The US Federal Reserve raised its policy rate on September 16, 2026, its first increase in three years, citing persistent energy and consumer price pressure. The Bank of Canada held on September 2, its seventh consecutive hold since an October 2025 cut. The two banks are reading the same energy shock differently: the Fed sees an inflation problem, while the Bank of Canada sees weaker growth compounded by tariffs. Canadian bond yields and fixed mortgage rates can still follow US Treasury yields.
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