Skip to main content

Featured

BoC Opens the Door to Rate Hikes: What It Means for Your Mortgage

  Published September 4, 2026 The Bank of Canada held its policy rate at 2.25% on September 2 — the seventh straight hold — but Governor Tiff Macklem didn't sound like a central banker done for the year. He told reporters the Bank is "prepared to raise interest rates, and if it takes more than one increase, we're prepared to do that," if inflation stays too high. That's a real shift in tone, and it lands right as a wave of Canadians hit their mortgage renewal date. Here's what changed, who's forecasting what, and what it actually means for your payment. Why the Bank Suddenly Sounds Hawkish Canada's annual inflation rate has climbed to around 3% — a full point above the Bank's 2% target — and the Bank is pointing squarely at energy prices. Oil has stayed elevated because of the Iran conflict and disruption near the Strait of Hormuz, pushing gas prices up and dragging headline CPI with it. Core inflation, which strips out food and energy, is still s...
Post a Comment
Read more

article

Labels

Canada's Inflation Rate Declines to 1.8% in December Amid GST Tax Break

 

Canada's annual inflation rate fell to 1.8% in December 2024, according to Statistics Canada. This decrease is largely attributed to the federal government's temporary tax break on various goods and services, including food purchased from restaurants, alcohol, tobacco, and clothing.

The tax break, which was introduced mid-December, significantly contributed to the deceleration in inflation. Without this tax relief, the inflation rate would have risen to 2.3%. Grocery prices also saw a decline, falling to 1.9% from the previous month.

The Bank of Canada is now closely monitoring these developments as it prepares for its next interest rate decision. Analysts are speculating whether this consistent easing of inflation might prompt further rate cuts.

This report highlights the impact of fiscal policies on inflation and underscores the importance of government interventions in managing economic stability.




Labels:

Comments

Post a Comment