US growth rate raised to 2.4%... RBC expects larger additional rate hikes in Canada

RBC Economics raised its U.S. growth forecasts for both 2026 and 2027 to 2.4% from 2.1% and 2.2%, respectively, in its November 12 report "Central banks remain focused on inflation risks," while projecting average unemployment of 4.2% in each year. The upgrade follows Bureau of Economic Analysis data showing third-quarter real GDP rose 3.4% annualized, up from 2.2% in the second quarter. RBC's base case still implies a larger cumulative rate-hike path for Canada than for the U.S., even as both central banks remain focused on inflation risks. The revised forecasts matter because they suggest resilient U.S. demand could keep inflation pressures alive and complicate the timing of any policy easing. Next, watch upcoming U.S. inflation and labor data, along with Bank of Canada and Federal Reserve guidance, for whether the projected hike paths hold.