Canada's Big Banks Diverge on 2026 Rate Forecasts
After a year of expected rate cuts, forecasters are questioning how long Canada's easing cycle will last and whether rates might start rising again in 2026.
Initially, the focus was on how quickly interest rates might come down, but now the conversation is shifting to when they might start rising again.
- Most banks agree that modest rate cuts are yet to come by the end of 2025.
- Several banks think the Bank of Canada could begin nudging rates higher again in 2026 due to sticky inflation and global risks.
The latest forecasts from Canada's major banks show that views remain divided.
Author's summary: Canada's banks diverge on 2026 rate forecasts.