RBC chief economist Frances Donald said the bank is cautiously optimistic on Canada despite persistent US-Canada trade uncertainty. RBC forecasts GDP growth below 2% this year and next, but notes per-capita output is stronger amid stagnant population growth and that western resource-rich provinces are now the main growth drivers. Citing risks from rising energy prices and an improving economy, RBC expects four BOC rate hikes next year, lifting the policy rate to 3.25%; risk is rising that the fi

RBC chief economist Frances Donald said the bank is cautiously optimistic on Canada despite persistent US-Canada trade uncertainty. RBC forecasts GDP growth below 2% this year and next, but notes per-capita output is stronger amid stagnant population growth and that western resource-rich provinces are now the main growth drivers. Citing risks from rising energy prices and an improving economy, RBC expects four BOC rate hikes next year, lifting the policy rate to 3.25%; risk is rising that the first hike could be brought forward to late 2026.