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Liberal Ranks Grow as Michael Ma Joins Carney’s Team

                      Markham-Unionville MP Michael Ma crossed the floor to join the Liberals on Thursday. In a dramatic political shift on Parliament Hill, Michael Ma, the Member of Parliament for Markham–Unionville, announced on December 11, 2025, that he is leaving the Conservative caucus to sit with the Liberals . His decision follows weeks of consultation with constituents and family, and comes on the heels of Nova Scotia MP Chris d’Entremont’s defection last month. Ma explained that his move was motivated by a desire for “unity and decisive action for Canada’s future.” He praised Prime Minister Mark Carney’s leadership, describing it as a steady and practical approach to tackling pressing issues such as affordability, economic growth, community safety, and opportunities for young families. The floor-crossing is politically significant: the Liberals now hold 171 seats, just one short of a majority in the House of...
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Bank of Canada Holds Rates Steady, Signals Pause Amid Strong Economy

 

                                            Tiff Macklem, Governor of the Bank of Canada

The Bank of Canada is widely expected to hold its benchmark interest rate at 2.25% in its final policy decision of 2025, marking the beginning of what economists believe could be an extended pause in monetary policy adjustments. After a year of multiple rate cuts aimed at supporting growth, the central bank now appears confident that the current level is sufficient to balance inflation pressures with economic resilience.

Recent data has reinforced this stance. Canada’s economy grew at an annualized pace of 2.6% in the third quarter, while the unemployment rate fell to 6.5% in November. Inflation also eased slightly, with October’s headline rate at 2.2%, down from 2.4% in September. These indicators suggest that the economy is performing better than anticipated, reducing the likelihood of further cuts in the near term.

Financial markets had already priced in a 93% chance of a rate hold, reflecting broad consensus among analysts that the Bank of Canada would step back after its easing cycle earlier this year. Governor Tiff Macklem previously signaled that rates were “at about the right level” to temper inflation without stalling growth.

The decision also comes as the U.S. Federal Reserve prepares its own rate announcement, underscoring the interconnectedness of North American monetary policy. While the Fed is expected to continue easing, Canada’s stronger-than-expected data has shifted speculation toward whether the next move could eventually be a hike rather than another cut.

This pause marks a turning point in 2025’s monetary policy trajectory. Having lowered rates four times earlier in the year, the Bank of Canada now appears set to hold steady into 2026, giving policymakers time to assess whether inflation remains contained and growth sustainable.

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