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RBC expects Canada economy to rebound in Q2 2026

RBC also projects the Bank of Canada will keep interest rates on hold throughout 2026, citing support from household spending and improving business investment.

Reported · Written up by our desk · Central Banks

FXStreet cites Royal Bank of Canada economist Claire Fan as expecting Canada’s economy to rebound in Q2 2026.

Fan’s outlook points to resilient household spending, a recovery in business investment, and expanding net trade as key supports for growth, with momentum continuing into the second half of 2026.

The note also says CUSMA exemptions are expected to shield most Canadian exports from U.S. tariff impacts.

On monetary policy, RBC expects the Bank of Canada to keep interest rates on hold throughout 2026.

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