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BoC Holds at 2.25%: What the Rate Decision (and Rising Gas Prices) Mean for Your Wallet

  Thursday, July 16, 2026 Sixth consecutive hold. A weaker 2026 growth forecast. And inflation that's running hotter because of gas prices, not the usual suspects. Here's what actually changes for you. The Bank of Canada held its overnight rate at 2.25% on Wednesday, exactly as markets expected. No surprise there. What's more interesting is why it held, and what it revealed about where the economy — and your bills — are headed next. This was the sixth straight hold since the Bank finished its easing cycle back in October. But buried in the accompanying Monetary Policy Report were a few numbers worth your attention. The Numbers That Matter Overnight Rate 2.25% (unchanged) Prime Rate (typical) 4.45% 2026 GDP Growth Forecast 0.7% (cut from 1.2%) 2027 / 2028 Growth Forecast 1.8% each year May CPI Inflation 3.2% Inflation Excluding Gasoline 2.2% Unemployment Rate (June) 6.5% Next Rate Decision September 2, 2026 Why Gas Prices Are Driving This Decision Here's the twist in th...

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Court Blocks Ontario’s Bike Lane Removal Plan, Citing Charter Violations

 

In a landmark decision, the Ontario Superior Court has ruled that the provincial government’s plan to remove protected bike lanes from three major Toronto streets—Bloor Street, Yonge Street, and University Avenue—is unconstitutional.

Justice Paul Schabas found that the removal would “put people at increased risk of harm and death,” violating Section 7 of the Canadian Charter of Rights and Freedoms, which protects life, liberty, and security of the person. The court rejected the province’s argument that removing bike lanes would ease traffic congestion, calling the evidence “weak” and “unpersuasive”.

The legal challenge was brought by Cycle Toronto and individual cyclists who rely on the lanes for daily transportation. The court sided with them, stating that government actions that knowingly increase danger without justification breach fundamental Charter protections.

Premier Doug Ford’s government, which fast-tracked Bill 212 in late 2024 to override municipal cycling infrastructure decisions, has vowed to appeal the ruling. The revised version of the law, passed in 2025, shifted language from “removal” to “reconfiguration,” but the court found this change still unconstitutional.

Toronto Mayor Olivia Chow reaffirmed that decisions about city infrastructure should rest with municipal council, not the province.

This ruling is being hailed as a major victory for cycling advocates and urban safety proponents, reinforcing that public safety must be a paramount consideration in policymaking.


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