Canada: Cyclical rebound and steady BoC stance – RBC

FXStreetJul 14, 2026 2:08 PM

View all comments（0）



Royal Bank of Canada (RBC) economist Claire Fan expects Canada’s economy to rebound in Q2 2026, supported by resilient household spending, recovering business investment and expanding net trade. Growth is projected to continue over the second half of 2026, with CUSMA exemptions still shielding most Canadian exports from U.S. tariffs. The Bank of Canada is expected to keep interest rates on hold throughout 2026.

Rebound supported by trade and spending

"Canada’s economy is on track to rebound in Q2, driven by resilient household spending, recovering business investment and expanding net trade."

"Growth is expected to continue over the second half of 2026 with CUSMA exemptions still protecting most Canadian exports from U.S. tariffs."

"The Bank of Canada is expected to remain on hold in 2026."

"Uncertainties around trade and energy prices are persisting but recent developments—broadly easing energy price growth and firming economic growth—have evolve broadly as expected, reaffirming the BoC’s steady stance."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

US Pre-Market: Memory Chip Stocks Rebound, IBM Plunges 22%, CPI and Warsh Hearing Arrive Together

TradingKey - On July 14, Eastern Time, the three major US stock index futures showed mixed performance in pre-market trading. As of press time, Nasdaq 100 Index futures rose 0.49%, S&P 500 Index futures edged down 0.12%, and Dow Jones Industrial Average futures fell 0.69%.

Intel Enters Space Computing Market for the First Time, Releases 18A Space-Grade Chip Starfire

TradingKey - Intel (INTC) recently unveiled a space-grade System-on-Chip (SoC) code-named Starfire, marking the company’s official entry into the space computing market with its first self-developed dedicated chip. The product is primarily designed for satellites, spacecraft, and other equipment in extreme environments, focusing on meeting the demands of commercial aerospace, defense, and government customers for low power consumption, high reliability, and artificial intelligence computing capabilities.

Kospi Index Slumps 30%: Breaches 7,000-Point Technical Level, Has South Korea Stock Market Officially Entered Bear Market?

Over the past month, the KOSPI Index has recorded a cumulative plunge of approximately 30% and is losing the key support level of 7,000 points. Having broken its bullish technical structure, the index may continue to decline toward the 5,000-point mark in the second half of the year.

AMD (AMD) Stock Price Forecast: Zen 6 Venice Launches July 22, Helios vs Nvidia Vera Rubin; Is $584 Next?

TradingKey - AMD launches Zen 6 Venice on July 22 at Advancing AI 2026. Citi says expect industry-shaking announcements. Stifel raised to $635. Helios rack-scale is Meta’s Nvidia alternative. At $539, the $557.70 trigger is the week-ahead watch level.

US June CPI Preview: Can Cooling Inflation Open Up Fed Rate Cut Expectations? How Will US Stocks, the Dollar, and Gold React?

TradingKey - The United States will release June Consumer Price Index (CPI) data this Tuesday, marking one of the most critical macro events for global financial markets this week. Following a significant pickup in U.S. inflation in May, and as recent Middle East tensions, oil price volatility, Fed meeting minutes, and non-farm payroll data collectively shift market expectations, the June CPI will significantly impact the Federal Reserve's next policy assessment while directly determining the short-term trajectory of U.S. stocks, the U.S. Dollar (USD), and Gold (XAUUSD).

Featured Tools