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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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Ottawa Scrambles as Trump’s Tariff Deadline Nears Without a Deal

 

                                                 Kirsten Hillman, left, Canada's ambassador to the U.S., and Dominic LeBlanc, Canada's                                                             minister responsible for Canada-U.S. trade, speak to reporters in Washington, D.C., on Thursday.


With a critical deadline fast approaching, Ottawa remains locked in negotiations as it seeks to avert looming tariffs threatened by former U.S. President Donald Trump. The tariffs, set to take effect within days, could have sweeping consequences for Canadian industries, particularly in manufacturing and agriculture.

Despite weeks of high-level talks, Canadian officials have yet to secure an agreement that would satisfy Washington’s demands. Trump, known for his aggressive trade stance during his presidency, has signaled a return to hardline policies, warning that punitive measures will be imposed if Canada fails to make concessions on key trade issues.

Sources close to the negotiations say sticking points include dairy market access, auto exports, and digital trade regulations. Ottawa has pushed back against what it calls “unreasonable demands,” emphasizing the importance of protecting domestic jobs and sovereignty.

Business leaders across Canada are urging swift action, warning that uncertainty is already affecting investment decisions and supply chains. “We need clarity, and we need it now,” said one Ontario auto executive. “Tariffs would be devastating.”

As the deadline looms, pressure mounts on Prime Minister Justin Trudeau’s government to strike a deal or face economic fallout. Whether compromise can be reached in time remains uncertain—but the stakes couldn’t be higher.

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