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BMO on The Week Ahead in Canada

BY MT Newswires | ECONOMIC | 07:21 AM EDT

07:21 AM EDT, 05/25/2026 (MT Newswires) -- Canada's key release this week is the Q1 real gross domestic product on Friday, said Bank of Montreal (BMO).

Q1 GDP looks to rebound 1.5% annualized after contracting modestly in Q4, noted the bank. Firm government and consumer spending will likely contrast with weakness in business investment, non-energy exports, and some regional housing markets.

With growth expected to remain modest until some clarity on the CUSMA trade deal review emerges, and generalized inflation likely to remain subdued by labor market slack, the Bank of Canada isn't expected to ratify market expectations of a couple of rate hikes this year, stated BMO.

Last week, Canada rates pulled back more than United States Treasuries on a calm consumer price index report that suggests underlying inflation is effectively close to the 2% year over year target, according to the bank. The 10-year Canada rate is down another 8 bps since Friday's close to 3.45%.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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