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The Fed Just Hiked Rates. Here's What It Means for Your Canadian Mortgage.

  The U.S. Federal Reserve raised its benchmark rate 25 basis points yesterday — the first hike in three years. The Bank of Canada hasn't moved. That gap is now the biggest story in Canadian personal finance. MoneySavings.ca  |  September 17, 2026  |  Canadian Money Brief Yesterday afternoon, the Federal Open Market Committee voted 12-0 to raise the U.S. federal funds rate by a quarter point, pushing it to a target range of 3.75%–4.00%. It's the Fed's first rate hike since July 2023, and Chair Kevin Warsh made clear it almost certainly won't be the last. The Bank of Canada, by contrast, has held its overnight rate at 2.25% through seven straight meetings. It doesn't decide again until October 28. For Canadians with a mortgage, a renewal coming up, or a home equity line of credit, this matters more than it might look at first glance. 3.75–4.00% New U.S. Fed Rate 2.25% Bank of Canada Rate 1.625% Rate Gap (vs. 1.375% yesterday) ~71.5¢ Loonie (post-hike low) What th...
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Manufacturing Slump Drags Canadian Economy into April Contraction

Canada’s economy contracted by 0.1% in April, according to Statistics Canada, marking a sharper-than-expected slowdown driven by widespread declines in the manufacturing sector.

Economists had anticipated flat growth for the month, but the downturn reflects mounting pressure across key industries. The manufacturing pullback was particularly notable, with sectors exposed to global trade tensions and tariffs bearing the brunt. This follows a modest 0.1% GDP increase in March, suggesting a reversal in momentum.

The data also casts a shadow over May, with preliminary estimates pointing to another month of contraction. Analysts are now watching closely for the Bank of Canada’s next move, as speculation grows around a potential rate cut amid signs of economic softening.

While the decline is modest, it underscores the fragility of Canada’s recovery and the growing impact of external pressures on domestic output.

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