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The Fed Just Hiked Rates. Here's What It Means for Your Canadian Mortgage.

  The U.S. Federal Reserve raised its benchmark rate 25 basis points yesterday — the first hike in three years. The Bank of Canada hasn't moved. That gap is now the biggest story in Canadian personal finance. MoneySavings.ca  |  September 17, 2026  |  Canadian Money Brief Yesterday afternoon, the Federal Open Market Committee voted 12-0 to raise the U.S. federal funds rate by a quarter point, pushing it to a target range of 3.75%–4.00%. It's the Fed's first rate hike since July 2023, and Chair Kevin Warsh made clear it almost certainly won't be the last. The Bank of Canada, by contrast, has held its overnight rate at 2.25% through seven straight meetings. It doesn't decide again until October 28. For Canadians with a mortgage, a renewal coming up, or a home equity line of credit, this matters more than it might look at first glance. 3.75–4.00% New U.S. Fed Rate 2.25% Bank of Canada Rate 1.625% Rate Gap (vs. 1.375% yesterday) ~71.5¢ Loonie (post-hike low) What th...
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Ottawa Suspends Federal Fuel Excise Tax as Iran Conflict Sends Prices Soaring

The federal government has moved to blunt the latest surge in fuel costs, announcing a temporary suspension of Canada’s federal fuel excise tax as the Iran war pushes global oil benchmarks to their highest levels since 2022. Finance Minister Mark Carney said the measure is designed to “provide immediate relief to Canadians” as geopolitical tensions ripple through global supply chains.

The excise tax—10 cents per litre on gasoline and 4 cents on diesel—has been lifted nationwide for an initial 90‑day period. Ottawa estimates the suspension will save the average driver $6–$10 per fill‑up, with larger savings for rural and northern households who rely heavily on long‑distance travel and diesel‑powered transport.

The move comes as crude prices spike on fears of supply disruptions through the Strait of Hormuz, a critical shipping corridor for global oil flows. Canadian refiners and retailers have already passed higher wholesale costs through to consumers, with pump prices rising 12–18 cents per litre in major cities over the past week.

Economists warn the tax suspension won’t fully offset global price pressures, but it may help prevent another broad inflation flare‑up—especially in transportation, groceries, and home‑heating fuels. Carney said the government is prepared to extend the measure if market volatility persists.

For households already stretched by high borrowing costs and elevated food prices, even modest relief at the pump offers welcome breathing room.

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