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BMO Capital Markets chief economist Douglas Porter talks to Financial Post’s Larysa Harapyn about the biggest risks facing the economy in 2026, with the uncertainty around the renegotiation of the Canada-United-States-Mexico Agreement topping the list.
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Amid this uncertainty, BMO expects modest economic growth in 2026 and predicts the housing market will remain ‘pretty quiet’ throughout the year.
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The interview also touches on Donald Trump’s nominee for the new Federal Reserve chair, Kevin Warsh, and the Bank of Canada’s decision to hold interest rates for the second meeting in a row.
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Porter said BMO economists expect Canada’s central bank to stay on the sidelines for all of 2026, but if it did make a move, a cut would be more likely than a hike.
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