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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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Your daily horoscope: December 26, 2025

 

IF TODAY IS YOUR BIRTHDAY

If you know what you want and have at least a rough idea about how you can get it then the next 12 months should be wonderful. The planets are aligning in your favour and if you put a name to your dream it will magically appear.

ARIES (March 21 - April 20):

The old year may be drawing to a close but already you are looking ahead and planning your next round of personal and professional conquests. As the most ambitious sign of the zodiac you know you cannot afford to slow down for even a moment.

TAURUS (April 21 - May 21):

If friends and colleagues try to burden you with tasks they should be doing for themselves you must speak up and let them know it isn’t going to happen. You like to help those in need, of course, but some people are trying to take advantage.

GEMINI (May 22 - June 21):

A risk of some kind may have a better than evens chance of paying off but what if it doesn’t? Can you afford to lose the kind of money you will be expected to wager? If not, err on the side of caution and give it a miss.

CANCER (June 22 - July 23):

Open up and let partners and loved ones know how much you care for them. Sometimes you can get so caught up in the hurly-burly of everyday life that you forget to reach out to the people who really matter. Remember to do so today.

LEO (July 24 - Aug. 23):

The planets warn if you burn the candle at both ends today you may regret it over the weekend. It may be that others are relying on you to deliver but what’s the point if you exhaust yourself in the process? Let them do more for themselves.

VIRGO (Aug. 24 - Sept. 23):

Your talents are amazing and you must make the world aware of that fact. Too often in the past you have hung back and let others steal the limelight but now it’s your turn to shine. If you are not Number One you are not trying hard enough.

LIBRA (Sept. 24 - Oct. 23):

You may be feeling a bit frazzled today so it is important that you don’t let unexpected events get you worked up. Keep telling yourself that what will be will be and, if past experience is anything to go by, it will most likely be good.

SCORPIO (Oct. 24 - Nov. 22):

Cosmic activity in the communications area of your chart will make it easy to reach out and make your point, even to people who might prefer not to hear the truth. You have never been one to pull your punches and you’re not about to start now.

SAGITTARIUS (Nov. 23 - Dec. 21):

If a flash of inspiration hits you today you must make good use of it. A deep down part of you knows what is best, so turn off your internal chatter and listen to what it is saying to you. Only then can you make the right choices.

CAPRICORN (Dec. 22 - Jan. 20):

All things are possible now but that does not mean you should try to do everything. Focus on the two or three aims that mean the most to you today and put all the others out of your mind until you can devote more time to them.

AQUARIUS (Jan. 21 - Feb. 19):

Fear is a wasteful emotion and your main priority today must be to pack up all the silly things that are worrying you and throw them in the nearest bin. It’s up to you what thoughts you let into your head, so make sure they are positive ones.

PISCES (Feb. 20 - Mar. 20):

Focus on the many things you have in common with other people and ignore the few things that keep you apart. If you can do that you will find in a matter of minutes that the world looks a better and brighter place – which it always was anyway.

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