TSX:AX.PR.E - Post by User
Comment by
garyreinson Nov 02, 2024 10:00pm
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Post# 36294036
RE:BANK OF CANADA
RE:BANK OF CANADA"GDP by industry was flat on the month in August, in line with expectations and Statistics Canada’s preliminary estimate. While activity is expected to rise 0.3%MoM in September, with revisions lower to start the quarter in July, Q3 GDP by industry is estimated to rise by around 1% annualized. We expect a softer 0.5% increase in GDP by expenditure, but the BoC’s latest forecast for 1.5% growth still looks too high. With little to change the backdrop of soft growth and an economy in excess supply that will continue to weigh on inflation, we continue to expect a faster return towards a neutral policy rate with 50bp cuts in December and January”"
If the US10 yr goes back under 4% along with this 100bp reduction in 2 months (even 50bp-75bp would be pleasant), XRE should have no problem taking out $18 and perhaps making a run for $19-20.