BMO Capital Markets chief economist Douglas Porter said in a weekend report that
Canada’s federal budget contains larger-than-expected fiscal stimulus, prompting
BMO to raise its 2027 GDP forecast to 2.0% from 1.8%. He noted the Bank of
Canada has raised rates to counter higher inflation expectations and may tighten
further, calling the fiscal and monetary directions “pulling in opposite
directions.” Porter added weak employment, falling oil prices and a tech
sell-off could prompt BoC policymakers to reassess whether a further hike in
December is necessary.
