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 policymake

2026-11-07

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.