BoC MPR: Growth is picking up; Inflation in Canada is expected to ease to about 2.5% in the second half of 2026
Newsquawk Staff ·
- The output gap for the second quarter of 2026 is estimated to be in the range of -1.5% to -0.5%, indicating slightly more excess supply than was anticipated in the April Report (albeit figures unchanged from Q1 estimate)
- The nominal neutral interest rate in Canada is assumed to be at the midpoint of its estimated 2.25% to 3.25% range. (unchanged)
Summary of Projections

Contributions to average annual real GDP growth

Sources
- Week in Focus 26-30th October 2026: FOMC, BoC, RBNZ, ECB, BoJ Policy Decisions, US PCE
- US Midterm Preview: Democrats Favoured to Flip the House, Senate Too Close to Call
- Newsquawk Daily Economic Release - 26th October 2026
- Newsquawk Weekly Economic Release 26th - 30th October 2026
- [MARKET ANALYSIS] DXY is a touch firmer, Kiwi gains whilst the JPY digests further BoJ source reports
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