📝Fiscal Policy To Toughen BoC's Campaign Against Inflation: TD Securities

The Bank of Canada likely has a tougher job of cooling inflation relative to the Federal Reserve. Inflation in the U.S. is higher than in Canada, 8.5% versus 6.7%. However, U.S. fiscal policy has been reduced somewhat since the peak of the pandemic, while in Canada, government initiatives continue to support the economy. Furthermore, Canada has 2 times the population growth of the U.S., powered by immigration, so it might take longer in Canada to reach a demand-supply balance. BOC may have to act more aggressively than the Fed amidst stronger domestic demand fundamentals. - TD Securities