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, markets have focused on how quickly interest rates might come down, but now a quieter conversation is emerging about when rates 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 persistent global risks.
Views remain divided among Canada's major banks on the 2026 rate forecasts.
Author's summary: Canada's banks diverge on 2026 rate forecasts.
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