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Bank of Canada Holds at 2.25% — What the Fine Print Means for You

  July 15, 2026  |  Canadian Money Brief The Bank of Canada held its policy rate at 2.25% today, exactly as every economist surveyed expected. The number didn't move — but the story underneath it did. Between renewed oil-market chaos, a stubbornly hot inflation reading, and an economy that's finally showing signs of life, this "boring" hold decision was anything but simple. If you've been following our preview piece from earlier this week , this is the follow-up: what actually happened, and what it means for your mortgage, your savings, and your grocery bill. The Decision, in Plain English This marks the sixth consecutive hold since the Bank's last cut back in October 2025. The overnight rate stays at 2.25%, the Bank Rate at 2.5%, and the deposit rate at 2.20%. Bank prime — the number that actually determines your variable mortgage or line of credit rate — stays put at 4.45%. Governor Tiff Macklem has described this level as sitting near the bottom of the Bank...
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Canadian Business Insolvencies Double in January

 

The Canadian business landscape faced a significant upheaval in January as business insolvencies more than doubled compared to the same period last year. This surge in insolvencies also surpassed pre-pandemic levels for the month.

The Office of the Superintendent of Bankruptcy reported 759 business insolvencies in January, marking a 42.4% increase from December and a staggering 129.3% rise from January 2023. To put this into perspective, back in January 2020—before the pandemic began—there were only 308 business insolvencies.

These business insolvencies encompass both bankruptcies and proposals (where some or all of the debt is paid back). The situation was further complicated by the $60,000 Canada Emergency Business Account loans, which were distributed to nearly 900,000 businesses and non-profit organizations to help them weather the pandemic storm. Up to one-third of this loan could be forgiven if the remaining two-thirds were repaid by January 18. Otherwise, the debt transformed into a three-year loan with a five percent annual interest rate. Businesses were also given the option to refinance their loans before the end of March and still qualify for partial forgiveness.

However, many businesses missed the January deadline due to other pandemic-related debts. The impact of these insolvencies extends beyond the numbers reported, as numerous small businesses simply shut their doors without formally filing for insolvency. In the words of Simon Gaudreault, Chief Economist and Vice-President of Research at the Canadian Federation of Independent Business (CFIB), “Insolvencies are just the tip of the iceberg.”

The sectors hit hardest by this surge in insolvencies include accommodation and food services, retail trade, and construction. While business bankruptcies rose significantly year-over-year, proposals also saw an increase. Consumer insolvencies followed suit, growing by 23.5% compared to the previous year but remaining lower than in January 2020.

As the Canadian economy grapples with pandemic debt and higher interest rates, policymakers and business owners alike will closely monitor the situation. The real toll on businesses may be even greater than the reported numbers, emphasizing the need for continued support and vigilance.


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