Perspectives

Canada’s latest federal budget comes with some very big numbers.

A more resilient economy has left the government with stronger revenues and billions of dollars in expected savings. And Ottawa’s massive spending plan – roughly $151 billion in net new spending over the next five years – largely aims to invest in and strengthen the Canadian economy and its sovereignty.

Prime Minister Mark Carney’s second budget includes spending aimed at attracting investment, advancing major projects, targeted support for high-growth businesses, the previously-announced Productivity Mega Deduction as well as details on immigration levels.

It also includes measures intended to help households still struggling with the cost of living and some new funding to combat homelessness.

Rebekah Young, Vice President of Economic Policy at Scotiabank, joins the podcast from the federal budget lockup in Ottawa to assess whether this budget meets the moment and Canada's overall fiscal trajectory.

Read Rebekah’s full report on the 2026 federal budget: Canada’s 2026 Federal Budget: A Big Savings, Big Spend Budget



Key moments this episode:

00:01:41 - Rebekah's headline takeaway to sum up the budget 00:02:01 - What the budget tells us about Canada's overall economic outlook 00:04:22 - Rebekah's interpretation of the budget title, ‘Masters of Our Destiny’ 00:05:55 - Rebekah's analysis of Canada's fiscal trajectory with this new spending 00:06:35 - Other areas of investment such as tackling homelessness 00:08:13 - What the budget does to address affordability concerns 00:09:08 - How the budget builds on the previously announced Productivity Mega Deduction 00:11:31 - What we know so far about the Canada Strong Fund 00:12:34 - New details on meeting NATO's 2035 defence expenditure requirement 00:14:16 - The new immigration plan 00:15:18 - How immigration numbers meet labour force requirements for future major projects 18:23 - Whether new expenditures raise inflation concerns as the Bank of Canada hikes rates 00:20:34 - Will this budget spur investment? 00:22:39 - What matters most for businesses and investors in this budget? 00:23:55 - What Rebekah will be watching in the next six to 12 months 00:25:04 - Rebekah's main takeaways from this budget

For the first time in three years, the Bank of Canada has raised its key interest rate by a quarter of a percentage point, bringing it to 2.50%.

The widely expected move is aimed at containing inflation, which high oil prices have pushed up to around 3% – the upper limit of the central bank’s target range – since April. And while many businesses have absorbed high energy costs, Bank of Canada surveys suggest some may soon pass these increases onto consumers, spurring broader inflation concerns.

This tightening comes amid ongoing trade uncertainty with the United States and as Canada pushes forward with major infrastructure and resource projects to bolster the country’s economy long-term.

Olivier Gervais, the Director of Modelling and Forecasting at Scotiabank, says a rate hike was the right call given all of these factors. While this will increase the cost of capital for businesses, the impact will likely be small relative to transformative government policies like the Productivity Mega Deduction put forward to incentivize business investment and generate economic activity. Keeping inflation in check is also a far more important factor for fostering a positive business climate, he added.

Gervais joins this episode of the Perspectives podcast, in collaboration with The Growth Lens by Scotia Growth Institute, to break down why the central bank decided to hike now, what it means for Canadian consumers, businesses, and why one rate hike is likely not enough.

Key Moments:

00:01:40 – Olivier's main takeaways from the rate increase decision00:02:56 – What changed since the Bank of Canada's last decision?00:04:25 – How the central bank weighs uncertainties like oil prices and ongoing trade talks00:06:00 – The likelihood of future rate increases 00:06:39 – What are the conditions for economic growth in Canada like?00:08:31 – How much the rate hike tempers investment and how much recent policies incentivize it00:09:51 – What the rate hike means for consumers00:10:35 – What the rate hike means for businesses00:11:05 – How different sectors will be affected00:12:01 – Olivier provides an overview of the housing market in Canada00:13:34 – What would need to happen for the Bank of Canada not to raise rates in the next decision00:14:31 – What Olivier will be watching until the next decision00:15:20 – Key points for Canadians to know from the decision

We've got something a little different for Perspectives listeners this week.

Over the past several months, we've been working on a new podcast: The Growth Lens by Scotia Growth Institute.

While Perspectives explores the trends shaping markets, business and the economy, The Growth Lens by Scotia Growth Institute takes a step back to examine a broader question: what will it take to strengthen Canada's long-term economic future? Through conversations with economists, business leaders and policymakers, the show explores the investments, policies and major projects that could shape Canada's prosperity, productivity and competitiveness for decades to come.

To introduce the show, we're sharing one of its recent episodes with Perspectives listeners.

If you enjoy the conversation, you can subscribe to The Growth Lens by Scotia Growth Institute and explore more episodes, reports and articles here:

The Growth Lens by Scotia Growth Institute Website

Building Canada Initiatives: Year One Progress Report — The Shovels Are Calling

Building Canada Initiatives: Pacific Link — A Flashing Green Light

New episodes of Perspectives will return soon.

Women's health is getting more attention now, but many women have spent years being told to push through symptoms that were misunderstood, dismissed, or normalized.

In this episode, Dr. Sheila Wijayasinghe, family physician and medical director of Primary Care Outreach at Women's College Hospital in Toronto, explains why the gap in care still reverberates today — delaying diagnoses, affecting medical research, and impacting career growth, finances and day-to-day life.

She also dives into:

• how issues such as endometriosis, fertility challenges, perimenopause, and menopause can affect work and financial wellbeing

• why women's health remains under-researched, and how that shapes the care patients receive

• why earlier support, better awareness, and more open conversations can make a meaningful difference

For legal disclosures, please visit http://bit.ly/socialdisclaim and www.gbm.scotiabank.com/disclosures

Key moments this episode:

00:3:46 Historical gaps in medical research and their impact on women's health.

00:6:32 How women's health affects financial security and long-term well-being.

00:11:08 The impact of health challenges on careers and workplace experiences.

00:13:45 Why workplace support and understanding matter.

00:16:41 The origins of the collective and its advocacy for women's health.

00:21:09 The role of self-advocacy, peer support, and speaking up.

00:24:41 Wellness trends: what's worth paying attention to?

Artificial intelligence has quickly become part of everyday life. It helps people write emails, summarize meetings, generate code, and answer questions in seconds.

But the next phase of AI may be less about generating information and more about taking action.

In this episode, Ty Panagoplos, Executive Vice President and Chief Technology Officer at Scotiabank, explains how AI has evolved from a specialized technology used by experts into a mainstream tool available to almost anyone. He explores one of the biggest trends shaping the industry today: Agentic AI.

Ty breaks down what Agentic AI actually is, how it differs from generative AI, and why organizations are paying close attention to its potential to automate increasingly complex tasks. He also discusses how banks are approaching AI adoption, balancing innovation with security, governance, and trust.

He also discusses:

Why ChatGPT changed the public conversation around AI and accelerated adoption

The difference between Generative AI, AI agents, and fully autonomous Agentic AI

How AI is already improving productivity across organizations

Why Scotiabank joined an AI consortium focused on safe AI deployment

The guardrails banks need before autonomous AI can be widely adopted

The risks posed by misinformation, hallucinations, security threats, and bad actors

The emerging role of AI agents in customer service and software development

How AI could help create more personalized banking experiences in the future

What the next three to five years of AI innovation may look like



For legal disclosures, please visit http://bit.ly/socialdisclaim and www.gbm.scotiabank.com/disclosures

Key moments this episode:

00:01:45 Ty Panagoplos’ background in technology and banking

00:02:50 Why AI suddenly became mainstream

00:04:45 The biggest opportunities AI creates for businesses

00:06:05 How AI is already being used across banking

00:07:55 What Scotia Intelligence is and how it works

00:09:55 Generative AI versus agentic AI explained

00:12:00 Why Scotiabank joined an AI consortium

00:15:05 The risks of AI and the importance of guardrails

00:16:50 Privacy, hallucinations, scams and other concerns

00:18:00 The next wave of AI tools

00:19:30 Frontier models and the future of cybersecurity

00:20:55 What AI could look like over the next three to five years