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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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Trudeau's Resignation Sparks Speculation on Upcoming Canadian Election

 

Canadian Prime Minister Justin Trudeau has announced his resignation as the leader of the ruling Liberal Party, following months of pressure from party members and declining public approval ratings. Trudeau's decision to step down comes ahead of a federal parliamentary election that must happen by October 2025, but it could be held earlier if the House of Commons passes a motion of no-confidence to dissolve the incumbent Liberal government.

Trudeau's nine-year tenure as Prime Minister has faced increasing challenges, with two-thirds of Canadians disapproving of his performance amid frustration over the cost of living and record immigration levels. The Liberal Party now trails the opposition Conservative Party by more than 20 percentage points, and voter support hit a record low by the end of 2024.

The resignation of Deputy Prime Minister and Finance Minister Chrystia Freeland in December further intensified the pressure on Trudeau to step down. Freeland's departure, along with recent losses in by-elections in formerly Liberal strongholds, pushed party members to hold a closed-door caucus meeting in late October, where they urged Trudeau to resign.

Trudeau's resignation has led to speculation about the timing of the next federal election. While the election must be held by October 2025, it could be called earlier if the House of Commons passes a motion of no-confidence. The Liberal Party constitution states that upon resignation, the party board of directors, in consultation with the caucus, should appoint an interim leader. The party will then conduct a robust, nationwide competitive process to select a new leader.

As Canadians await the selection of a new Liberal leader, the political landscape remains uncertain. The upcoming election will provide a clear choice for Canadians, and the outcome will shape the future direction of the country.


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