Skip to main content

Featured

5 Things to Know Today — September 22, 2026

  September 22, 2026 BoC hike odds reach a coin flip. Oil retreats from four-month highs. Trump's Belarus potash play draws fire. A new federal bill speeds up major projects — with strings attached. Here's what moves your money today. 1. BoC October Hike Is Now a Coin Flip The Bank of Canada next meets October 28 , and markets are evenly split on whether it will raise rates for the first time since cutting to 2.25%. The whiplash is largely imported: after the U.S. Federal Reserve hiked 25 basis points to 3.75–4.00% on September 16 in a unanimous 12-0 vote — the first American rate increase since July 2023 — market-implied odds of a matching BoC move jumped from below 10% to roughly 60% in two weeks, according to LSEG Data & Analytics. Before the BoC's September 2 hold, odds of a hold sat at 94%. The 175-basis-point gap between the BoC (2.25%) and the Fed (3.75–4.00%) is the widest since 2022, which puts direct downward pressure on the loonie and upward pressure on Ca...
Post a Comment
Read more

article

Labels

Canada Shelves Digital Services Tax to Smooth Trade Relations with U.S.



In a significant shift in policy, the federal government has announced it will retract its proposed digital services tax (DST), citing progress in trade negotiations with the United States. The decision marks a diplomatic pivot aimed at easing cross-border tensions and advancing economic cooperation between the two nations.

Originally introduced as a means to ensure that multinational tech giants pay their fair share of taxes in Canada, the DST faced stiff opposition from U.S. lawmakers and companies. Critics warned the measure could trigger retaliatory tariffs and complicate efforts to modernize the Canada-U.S. trade relationship.

Government officials framed the rollback as a strategic move to bolster trust and goodwill in trade dialogues, while reaffirming Canada’s commitment to a multilateral solution through the OECD’s global tax framework. The federal finance minister emphasized that the government still supports fair taxation in the digital economy but acknowledged the importance of “cooperative solutions over unilateral measures.”

The decision is expected to be well-received by U.S. counterparts and may set the stage for renewed momentum on broader economic agreements.



Labels:

Comments

Post a Comment