Bank of Canada Expected to Hold Rates Steady
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Yahoo Finance
- Rate Stability Expectation: CIBC analysts Ali Jaffery and Andrew Grantham note that the Bank of Canada is widely expected to keep rates steady, reflecting a cautious approach towards economic growth that may influence market expectations for future monetary policy.
- Market Reaction Analysis: The general expectation of stable rates may lead investors to adopt a wait-and-see attitude in the short term, potentially affecting liquidity in both equity and bond markets.
- Economic Growth Consideration: This decision by the central bank may stem from concerns over slowing economic growth, particularly amid increasing global economic uncertainty, which could impact consumer and business confidence.
- Policy Impact Assessment: Keeping rates unchanged may affect Canada's real estate market, especially as high-rate environments maintain borrowing costs for homebuyers, thereby influencing market activity levels.
Analyst Views on CM
Wall Street analysts forecast CM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CM is 93.02 USD with a low forecast of 84.94 USD and a high forecast of 99.34 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
4 Buy
4 Hold
1 Sell
Moderate Buy
Current: 93.420
Low
84.94
Averages
93.02
High
99.34
Current: 93.420
Low
84.94
Averages
93.02
High
99.34
About CM
Canadian Imperial Bank of Commerce is a North American financial institution. The Company's segments include Canadian Personal and Business Banking, Canadian Commercial Banking and Wealth Management, U.S. Commercial Banking and Wealth Management, and Capital Markets. Canadian Personal and Business Banking segment provides personal and business clients across Canada with financial advice, services and solutions through banking centers, mobile and online channels. Canadian Commercial Banking and Wealth Management segment provides relationship-oriented banking and wealth management services. U.S. Commercial Banking and Wealth Management segment is focused on middle-market and mid-corporate companies, entrepreneurs, high-net-worth individuals and families, as well as operating personal and small business banking services in six United States markets. Capital Markets segment provides integrated global markets products and services, investment banking and corporate banking solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
