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5 Things to Know Today: Your Canadian Money Brief

  Wednesday, April 29, 2026 | moneysavings.ca/canadian-money-brief 1. The Bank of Canada Is Watching — And So Should You Markets are closely parsing every signal from the Bank of Canada ahead of its next rate announcement. With inflation holding stubbornly above target in key categories like shelter and groceries, economists are split on whether another cut is on the table or a longer hold is in store. If you're carrying variable-rate debt or sitting on a GIC renewal, now is the time to model both scenarios. What to do: Don't lock into a long-term rate product until after the next announcement. A few days of patience could save you thousands. 2. Spring Housing Market: More Listings, Less Panic After years of near-empty inventory, more Canadian sellers are finally listing — particularly in the Greater Toronto Area and Greater Vancouver. The uptick in supply is giving buyers breathing room they haven't seen since pre-pandemic times. That said, prices haven't mean...
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Economists Predict Further Decline for the Canadian Dollar in 2025


As 2024 draws to a close, economists are sounding the alarm about the Canadian dollar, commonly known as the loonie, which could see further declines in 2025. The loonie has already dropped below 70 cents US, reaching its lowest level since March 2020. This downward trend is driven by several factors, including political uncertainty, economic divergence between Canada and the United States, and interest rate differentials.

Karl Schamotta, chief market strategist at Corpay, predicts a turbulent period ahead for the Canadian dollar. He attributes the loonie's weakness to the outperforming U.S. economy, which is attracting more investments south of the border. Additionally, the Bank of Canada's aggressive interest rate cuts to support the domestic economy have made the Canadian dollar less attractive to global investors.

The upcoming U.S. presidential term under Donald Trump adds another layer of uncertainty. Trump's proposed tariffs on Canadian imports could further weaken the loonie if implemented. However, there is a possibility of a modest rebound later in 2025 as the Bank of Canada's rate cuts may renew activity in the Canadian housing market and consumer spending.

While a weaker loonie can benefit Canadian exporters by making their goods cheaper abroad, it also increases the cost of imports and travel for Canadians. The balance between these factors will be crucial in determining the loonie's performance in the coming year.

Economists advise caution and suggest that businesses and consumers brace for potential volatility in the currency markets. The coming months will be critical in shaping the loonie's trajectory, and only time will tell if the Canadian dollar can regain its strength.


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