According to Jinshi, overnight index swap dealers have lowered their expectations for a rate cut by the Bank of Canada as Canada's economic growth improves, inflation remains high, and U.S. CPI is higher than expected. However, TD Securities told clients that the change in pricing "has gone too far." Chris Whelan, interest rate strategist at TD Bank, said traders currently expect the Bank of Canada to cut interest rates by a total of 0.60 percentage points by the end of 2024, or about two 25 basis point cuts. TD Bank said Canada's (economic) growth backdrop is "fundamentally weaker" than that of the United States because of higher household debt levels and higher renewal rates for mortgages. The bank still expects the Bank of Canada's policy rate to fall from the current 5% to 4.25% or 4% by the end of 2024.