Skip to main content

Featured

BoC Holds at 2.25%: What the Rate Decision (and Rising Gas Prices) Mean for Your Wallet

  Thursday, July 16, 2026 Sixth consecutive hold. A weaker 2026 growth forecast. And inflation that's running hotter because of gas prices, not the usual suspects. Here's what actually changes for you. The Bank of Canada held its overnight rate at 2.25% on Wednesday, exactly as markets expected. No surprise there. What's more interesting is why it held, and what it revealed about where the economy — and your bills — are headed next. This was the sixth straight hold since the Bank finished its easing cycle back in October. But buried in the accompanying Monetary Policy Report were a few numbers worth your attention. The Numbers That Matter Overnight Rate 2.25% (unchanged) Prime Rate (typical) 4.45% 2026 GDP Growth Forecast 0.7% (cut from 1.2%) 2027 / 2028 Growth Forecast 1.8% each year May CPI Inflation 3.2% Inflation Excluding Gasoline 2.2% Unemployment Rate (June) 6.5% Next Rate Decision September 2, 2026 Why Gas Prices Are Driving This Decision Here's the twist in th...

article

Saudi Arabia Shifts Focus to Modest Military Cooperation with U.S.



Saudi Arabia has abandoned its pursuit of an ambitious defense treaty with Washington in return for normalizing relations with Israel and is now pushing for a more modest military cooperation agreement, two Saudi and four Western officials told Reuters.

In a drive to get a wide-ranging mutual security treaty over the line earlier this year, Riyadh softened its position on Palestinian statehood, telling Washington that a public commitment from Israel to a two-state solution could be enough for the Gulf kingdom to normalize relations. However, with public anger in Saudi Arabia and the wider Middle East at fever pitch over Israel's military actions in Gaza, Crown Prince Mohammed bin Salman has again made recognition of Israel conditional on it taking concrete steps to create a Palestinian state.

Israeli Prime Minister Benjamin Netanyahu is still eager to secure normalization with the Saudi powerhouse as a historic milestone and a sign of broader acceptance in the Arab world, Western diplomats said. But he faces overwhelming opposition at home to any concessions to the Palestinians following the Oct. 7 Hamas attacks and knows any gesture in the direction of statehood would fracture his ruling coalition, they said.

With both leaders shackled for now by their domestic powerbases, Riyadh and Washington hope a more modest defense pact could be sealed before President Joe Biden leaves the White House in January, the sources said. A full-blown U.S.-Saudi treaty would need to pass the U.S. Senate with a two-thirds majority - and this would be a non-starter unless Riyadh recognizes Israel, the six sources said.

The pact now under discussion would involve expanding joint military exercises and drills to address regional threats, mainly from Iran. It would foster partnerships between U.S. and Saudi defense firms, with safeguards to prevent collaboration with China, the sources said. The agreement would promote Saudi investment in advanced technologies, especially drone defense. The U.S. would increase its presence in Riyadh through training, logistics, and cyber security support, and may deploy a Patriot missile battalion to enhance missile defense and integrated deterrence. But it would not be the kind of binding mutual defense treaty that would oblige U.S. forces to protect the world's biggest oil exporter in the event of foreign attack.

"Saudi Arabia will get a security deal which will allow more military cooperation and sales of U.S. weapons, but not a defense treaty similar to that of Japan or South Korea as initially sought," said Abdelaziz al-Sagher, head of the Gulf Research Institute think-tank in Saudi Arabia.


Comments