Bank of Canada forecasts 2026 inflation averaging 2.9%

The revision matters less for the headline number than for its direction: the Bank of Canada is now modelling inflation running meaningfully above target through 2027, not just a temporary overshoot. That combination — firmer growth alongside higher inflation — suggests the central bank sees less room to ease than previously assumed, which feeds directly into rate expectations and the cost of capital for rate-sensitive sectors. Whether the 2027 figure proves to be a persistent overshoot or a forecast artifact is the open question worth tracking.