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BoC Held Again at 2.25% — But a Rate Hike Is Now More Likely Than Not Before Year-End

  Bond markets put the odds of an October 28 hike at 57%. Here's what the big banks are forecasting, what it means for your mortgage payment, and how to think about your next move. MoneySavings.ca · September 17, 2026 The Bank of Canada kept its overnight rate at 2.25% on September 2 — the seventh consecutive hold since the last cut in October 2025. On the surface, nothing changed. Below the surface, everything did. Governor Tiff Macklem's post-decision language was the most hawkish the Bank has sounded in over a year. He flagged that persistently high oil prices (Brent has since touched $107) and new U.S. tariffs — combined with Canada's own $27.6 billion retaliation list — are creating genuine upside risks to inflation. The BoC's August deliberations summary, released September 16, confirmed the Governing Council is now actively weighing a hike, not just a hold. The August CPI reading that came in on September 14 didn't settle anything: headline inflation held at ...
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How inflation affects your taxes in 2024



If you are a Canadian taxpayer, you may want to know how inflation will impact your taxes in 2024. The Canada Revenue Agency has announced that most income tax and benefit amounts will be indexed to inflation using a 4.7 per cent rate, which is higher than the previous years. This means that the tax brackets, the basic personal amount, and some tax credits will increase to reflect the rising cost of living. Here are some of the key changes you need to know:

  • Tax brackets: The federal income tax brackets for 2024 have been adjusted to account for inflation. The new thresholds are: $55,867 for the 15 per cent bracket, $111,733 for the 20.5 per cent bracket, $173,205 for the 26 per cent bracket, $246,752 for the 29 per cent bracket, and above that for the 33 per cent bracket. The provincial tax brackets have also been indexed to inflation, but using different rates depending on the province.
  • Basic personal amount: The basic personal amount (BPA) is the amount of income you can earn without paying any federal tax. The BPA for 2024 is $15,705, which is higher than the 2023 amount of $15,000. However, the BPA is gradually reduced for taxpayers with net income above $173,205, until it reaches $14,156 for net income of $246,752 or more. The BPA is worth 15 per cent of its value as a non-refundable tax credit.
  • Non-refundable tax credits: Some non-refundable tax credits, such as the age amount, the spouse or common-law partner amount, and the eligible dependant amount, have also been increased for 2024 to reflect inflation. These credits are calculated by multiplying the amount by 15 per cent, the lowest federal tax rate. For example, the age amount for 2024 is $8,421, which means you can claim a credit of $1,263 if you are 65 or older.
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