Canada Strengthens Pro-Growth Agenda With Wider Capital Expensing, BMO Says

07:44 AM EDT, 09/16/2026 (MT Newswires) -- Canada's move on Tuesday to expand immediate expensing for major capital investments broadens existing measures and reinforces its pro-growth policy agenda, according to BMO Capital Markets in a note. The measure could further strengthen Canada's appeal as an investment destination, wrote BMO's Senior Economist Robert Kavcic in Tuesday's note. Capital investment has remained firm, but growth has been driven largely by public spending on health care, education and transportation to meet infrastructure needs from rapid population growth, added Kavcic. Private-sector investment has remained subdued since the oil-price collapse ended the 2014 capex boom, said the bank. A more favorable tax environment could help revive business investment across a broader range of industries.