Canada’s economy just delivered a surprising 3.4% annualized growth rate for Q2 2026, significantly outpacing the Bank of Canada’s 2.5% forecast. While headline numbers suggest a robust expansion, Bay Street economists are urging caution. Experts from BMO, TD, CIBC, and RBC warn that this growth is largely propped up by one-off factors, including Census hiring and temporary shifts in the oil sector.
For GTA homeowners and prospective buyers, the takeaway is clear: don’t expect a sudden shift in interest rate policy. With the Bank of Canada’s policy rate holding steady at 2.25%, economists anticipate the central bank will remain on the sidelines for the remainder of the year. As the temporary tailwinds of Q2 begin to fade, the focus returns to the broader economic reality of an output gap that is narrowing only gradually. To understand how this prolonged rate stability impacts your next move, read the full analysis at the original source.
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