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Canada's Economy Just Grew 3.3% — Here's Why That Makes a September Rate Cut Even Less Likely

  Published August 29, 2026 If you've been holding out hope that a slowing economy might finally push the Bank of Canada toward a rate cut, Friday's numbers just closed that door a little further. Statistics Canada reported that the Canadian economy grew at an annualized pace of 3.3% in the second quarter — the fastest rate since 2023 — and revised figures show the first quarter expanded 0.3% rather than shrinking as originally reported. That confirms Canada never actually slid into a technical recession this year. It's good news for the economy. It's less good news if you were counting on lower borrowing costs anytime soon. What actually drove the growth The rebound was broad-based. Exports posted their strongest performance in 39 months, business investment in factories, equipment and commercial real estate jumped, and consumer spending held up as well. On a per-person basis, output grew at a 3.8% annualized clip — the quickest pace since late 2021, even with Canada...
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How Canadian banks are reshaping their workforce


The Canadian banking sector is facing a wave of layoffs as the industry tries to cope with the challenges of the pandemic, digital transformation and increased competition. According to a recent report by Bloomberg, the six largest banks in Canada have cut more than 11,000 jobs in the past year, a 4.4% reduction in their workforce. The report also predicts that more staff cuts are likely to come in the near future, as banks look to streamline their operations and reduce costs.

The main drivers of the layoffs are the changing consumer preferences and behaviors, which have accelerated due to the COVID-19 crisis. More customers are opting for online and mobile banking services, reducing the need for physical branches and tellers. The banks are also investing heavily in technology and innovation, such as artificial intelligence, cloud computing and cybersecurity, which require different skill sets and competencies than the traditional banking roles.

Another factor that is putting pressure on the banks is the increased competition from fintech startups and non-bank financial institutions, such as credit unions, insurance companies and payment platforms. These new entrants are offering more convenient, personalized and cheaper services to customers, especially in areas such as lending, wealth management and payments. The banks are losing market share and revenue to these disruptors, which are also attracting talent from the banking sector.

The report suggests that the banks will continue to cut jobs in areas such as retail banking, commercial banking and wealth management, while hiring more staff in areas such as technology, data analytics and risk management. The report also expects that the banks will outsource some of their functions to third-party providers or offshore locations, which could further reduce their domestic headcount.

The staff cuts are not only affecting the employees, but also the customers and the communities. Some customers may face reduced access to banking services, especially in rural and remote areas where branches may close or reduce their hours. Some communities may lose an important source of employment and economic activity, as well as social capital and civic engagement. The banks may also face reputational risks and regulatory scrutiny for their layoff decisions.

The Canadian banking sector is undergoing a major transformation that will have significant implications for its workforce, customers and society. The banks will have to balance their need for efficiency and innovation with their responsibility to their stakeholders and their role in the economy. The staff cuts may be inevitable, but they should not be done without careful consideration and communication.

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