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Business Brief: The inflation gap

Globe and Mail - Business - 2026-07-16

AI Summary

The Bank of Canada held its key lending rate steady, citing geopolitical risks but also reason for optimism based on core inflation measures. However, many Canadians feel the bank's inflation data doesn't align with their everyday cost-of-living experiences, creating a disconnect in public trust. This situation presents a paradox for the central bank, which must balance its mandate with public perception of affordability pressures.

Key takeaways

  • Bank of Canada held interest rates steady.
  • Core inflation remains near 2%, but headline inflation is higher.
  • Canadians report inflation data doesn't match their experience.

What this could mean for homebuyers

Mortgage news can affect fixed rates, variable-rate expectations, affordability, and buyer timing. Use this article as context, then compare today's rates or ask the AI Mortgage Advisor how it applies to your situation.

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