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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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TFSA contribution limit increases to $6,500 for 2023


If you are looking for a way to save money without paying taxes on the income or growth, you may want to consider opening or adding to a tax-free savings account (TFSA). A TFSA is a registered account that allows you to earn tax-free income and capital gains on your investments. You can also withdraw money from your TFSA at any time, for any reason, without paying taxes or affecting your government benefits and credits.

The amount that you can contribute to your TFSA each year is limited by your TFSA contribution room. This is the maximum amount that you can deposit to your TFSA without paying a penalty tax of 1% per month on the excess amount. Your TFSA contribution room is based on your age, your residency status, and the annual TFSA dollar limit set by the government.

For 2023, the annual TFSA dollar limit has increased to $6,500, up from $6,000 in 2022. This is the second year in a row that the limit has risen, following a period of four years when it remained at $5,500. The annual TFSA dollar limit is indexed to inflation and rounded to the nearest $500. The increase reflects the higher cost of living and the need for Canadians to save more for their future needs.

If you have never contributed to a TFSA before, or if you have withdrawn money from your TFSA in the past, you may have unused TFSA contribution room that you can carry forward to future years. The cumulative TFSA contribution room for 2023 is $81,500, assuming that you were 18 years or older in 2009, when the TFSA was introduced, and that you have been a resident of Canada for tax purposes ever since. You can find out your exact TFSA contribution room by checking your latest notice of assessment from the Canada Revenue Agency (CRA), logging into your My Account on the CRA website, or calling the CRA’s Tax Information Phone Service (TIPS).

A TFSA can be a great tool for saving for various goals, such as retirement, education, home purchase, travel, or emergency fund. You can choose from a variety of investment options for your TFSA, such as cash, mutual funds, stocks, bonds, GICs, and ETFs. However, you should be aware of the rules and restrictions that apply to TFSA investments, such as the prohibition of non-qualified and prohibited investments, and the tax consequences of holding foreign funds or earning an advantage within your TFSA.

To learn more about the TFSA and how it can benefit you, you can visit the CRA website or consult a financial advisor.

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