From the Bank of Canada's steady hand to a surge in housing starts and Ottawa's new financial crime-fighting agency — here are the five money stories every Canadian should have on their radar this morning. 1 Bank of Canada Rate Holds at 2.25% — Next Decision June 10 The Bank of Canada kept its overnight rate at 2.25% on April 29 and has signalled it intends to stay put for now. Governing Council is keeping a close eye on Middle East conflict spillover into energy prices, ongoing U.S. tariff uncertainty, and whether inflation — currently hovering just above the 2% target — becomes entrenched. Bond markets are currently pricing in roughly an 18% chance of a 25-basis-point cut by the July 15 announcement, making a move at the June 10 meeting unlikely. 💡 What it means for you: Variable-rate mortgage and HELOC holders can exhale — no surprise hikes on the horizon. But don't expect big rate relief either; the "lower-for-longer" window appears to be closing. 2 Mortgage...
Trump Administration Pushes Forward with Federal Workforce Cuts
The Trump administration is moving ahead with a significant reduction in the federal workforce, following the submission of downsizing plans by various agencies. This initiative, part of a broader effort to streamline government operations, has sparked widespread concern and debate.
Key agencies, including the Department of Veterans Affairs and the Department of Education, are expected to see substantial layoffs, with thousands of jobs on the line. The administration's directive emphasizes cutting non-essential functions and reducing budgets, aiming to reshape the federal bureaucracy. However, these measures have faced legal challenges, with courts recently ordering the reinstatement of some dismissed employees.
The economic implications of these layoffs are also under scrutiny, as fears of a potential recession loom. Critics argue that the cuts could disrupt essential services and harm vulnerable populations, while supporters view them as a necessary step toward fiscal responsibility.
This development marks a pivotal moment in the administration's efforts to redefine the role and scope of the federal government.
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