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Why Interest Rates Matter for Canadians

Interest rates are the single most powerful lever in Canada's economy.  When the Bank of Canada adjusts its policy rate, the effects reach every household—from the cost of carrying a mortgage to the return on a savings account. With rates currently at 2.25% and significant uncertainty ahead, understanding how rates work has never been more important for your finances. What Is the Bank of Canada's Policy Rate? The Bank of Canada sets the overnight policy rate—the interest rate at which major banks lend money to each other. This rate serves as a benchmark that influences borrowing and lending costs across the entire economy. When the Bank raises or lowers this rate, commercial banks adjust their prime rates accordingly, which directly affects the rates you pay on mortgages, lines of credit, and other loans. The Bank's primary goal is to keep inflation near its 2% target. When inflation runs too hot, the Bank raises rates to cool spending. When the economy slows, it cuts rates...
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US–EU Seal Landmark Trade Pact with 15% Tariff Framework


In a significant step toward reshaping transatlantic commerce, Washington and the European Union have finalized a framework trade agreement that cements a 15% U.S. tariff on most EU imports, including autos, pharmaceuticals, semiconductors, and lumber.

Under the deal, the EU will eliminate tariffs on all American industrial goods and grant preferential market access for a range of U.S. seafood and agricultural products. In return, the U.S. has pledged to scale back its current 27.5% tariffs on European cars and parts once Brussels introduces legislation to enact its promised tariff cuts.

The agreement also outlines major economic commitments: the EU will purchase $750 billion in U.S. energy products and invest an additional $600 billion in strategic U.S. sectors by 2028. Both sides have agreed to address digital trade barriers and explore expanding the pact to cover more sectors in the future.

Leaders on both sides hailed the accord as a “historic accomplishment,” positioning it as a foundation for deeper economic cooperation and a stabilizing force in global trade.

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