Canada's Big Banks Diverge on 2026 Rate Forecasts
Forecasters are questioning the duration of Canada's easing cycle and whether rates might rise again in 2026.
After a year of expected rate cuts, the focus has shifted from how quickly interest rates will fall to when they might start rising again.
- Most major banks agree on modest rate cuts by the end of 2025.
- Some banks think the Bank of Canada could increase rates in 2026 due to persistent inflation and global risks.
Views remain divided on the forecasts from Canada's major banks.
Author's summary: Canada's banks forecast rate changes.