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5 Things to Know Today About Your Money — May 12, 2026

  A lot is happening in the Canadian money world right now. From a new sovereign wealth fund you can actually invest in, to lower payroll costs coming your way, here are the five things every Canadian should know about their money today. 1. The Bank of Canada Is Holding Rates — For Now On April 29, 2026 , the Bank of Canada held its overnight rate at 2.25% (Bank Rate: 2.50%, deposit rate: 2.20%). Governor Tiff Macklem has flagged that the economy is growing at a moderate pace as it adjusts to U.S. tariffs, but inflation — now around 2.4% — is edging up due to higher oil prices tied to the ongoing Middle East conflict. The Bank projects 1.2% economic growth for 2026, picking up to 1.6% in 2027. What it means for you: Variable-rate mortgage and line-of-credit holders get a brief reprieve — but watch oil prices. If inflation keeps rising, a rate hike could follow. 2. Your CPP Contributions Are Getting a Cut in 2027 The 2026 Spring Economic Update proposes to reduce the base CPP con...

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Federal Reserve to Hold Interest Rates Steady Despite Market Anticipation

 

The Federal Reserve is expected to hold on interest rate cuts as they assess the economy and inflation . The policymakers are likely to signal that they expect to wait until they’re confident that inflation, which has tumbled from its peak, is reliably moving to their 2% target. 

The central bank’s benchmark rate influences the cost of most consumer and business loans, and companies, investors, and individuals have been eager for the central bank to ease the cost of borrowing. However, the economy remains healthy and doesn’t appear to need the stimulative benefits of a rate cut, which can spur more borrowing and spending and could even re-ignite inflation. The stock market is near a record high, and the yield on the influential 10-year Treasury note is well below its peak of nearly 5% last fall.

The Federal Reserve will likely move closer Wednesday to cutting its key interest rate after nearly two years of hikes that were intended to fight the worst inflation in decades. Yet it may not provide much of a hint about when — or how fast — it will do so. Most Fed watchers think the central bank’s first rate reduction will occur in May or June.














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