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2026-02-20 00:51:31
[Canadian Interest Rate Outlook Tilted to the Downside] Economists at Rabobank stated that the risks to Canadian interest rates are tilted to the downside in the coming quarters due to increased uncertainty surrounding the USMCA (United States-Mexico-Canada Agreement). The US-led review of the trade agreement is expected to accelerate this summer, with Trump administration officials citing challenges in negotiations. Regarding interest rates, Rabobank anticipates strong overseas demand for Canadian bonds will depress term premiums, pushing yields slightly lower by the end of 2026. The bank stated, "The yield curve is expected to flatten in the coming quarters."
