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.
For most of this year, the markets have focused on how quickly interest rates might come down, but now a quieter conversation is emerging about when they might start rising again.
- Major 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.
Views remain divided on the forecasts.
Author's summary: Canada's big banks have differing forecasts for 2026 interest rates.