August 2026 Market Commentary
The August 2026 Market Commentary looks at the Bank of Canada’s decision to hold interest rates steady for a sixth consecutive meeting, keeping the benchmark Bank Rate at 2.50%, its lowest level since July 2022. It also examines the softening labour market, a lowered 2026 GDP growth forecast, and the easing inflation picture that could open the door to further rate cuts.
The commentary then turns to the United States, where first-quarter GDP growth was revised higher to 2.1% and per capita output hit a new all-time high, a contrast with Canada’s GDP per capita, which remains below its 2022 peak. Near term, escalating geopolitical tensions involving the United States, Israel, and Iran have pushed oil prices higher and revived inflation expectations, though the medium to longer term outlook remains constructive, supported by easing central bank policy and productivity gains from artificial intelligence.
To read the full commentary, download the PDF below.