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The Rate Cuts Are Over — Is a Hike Coming?

  July 23, 2026 Oil shocks, sticky inflation and a technical recession are pulling the Bank of Canada in opposite directions at once. For most of the past two years, the only question about the Bank of Canada was how far and how fast it would cut. The overnight rate fell from 5.00% to 2.25% between June 2024 and October 2025, one of the sharpest easing cycles in the Bank's history, and it has held there through six consecutive decisions since. That story is now over. The question on the table for the rest of 2026 isn't whether the Bank cuts again — it's whether the next move is actually a hike. Two conflicting signals, one Bank The case for staying put — or even cutting — comes from the growth side of the ledger. Statistics Canada data showed the economy contracted in both the fourth quarter of 2025 and the first quarter of 2026, meeting the informal definition of a technical recession. That was enough to have some economists warning the Bank had no room to raise rates at a...
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Trump's Trade Diplomacy: A Step Toward Resolution with the EU

In a significant move, former U.S. President Donald Trump has expressed optimism about resolving trade disputes with the European Union (EU). This comes amidst ongoing tensions over tariffs and trade barriers that have strained transatlantic relations. Trump's announcement of a temporary 90-day pause on reciprocal tariffs exceeding 10% signals a willingness to engage in constructive dialogue.

The EU has reciprocated by suspending its planned counter-tariffs for the same duration, creating a window for negotiations. European Commission President Ursula von der Leyen emphasized the importance of this pause, describing it as an opportunity to pursue a "frictionless" trading relationship. Both sides aim to address key issues, including tariffs on steel and aluminum, agricultural subsidies, and intellectual property rights.

This diplomatic effort could pave the way for a more collaborative relationship between the U.S. and the EU, potentially setting a precedent for future trade agreements worldwide. While challenges remain, the temporary halt in tariffs offers a glimmer of hope for resolving long-standing disputes and fostering economic cooperation.

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