Market Watch

With ongoing trade and tariff issues taking their toll on economies
worldwide, the Bank of Canada (BoC) recognizes that the Canadian economy has been slowing after several months of remaining resilient.

On October 29, the BoC lowered the target overnight rate by 25 basis points (bps), to 2.25%, matching its rate reduction on September 17.¹ The next BoC interest rate announcement is slated for December 10.

Based on the Consumer Price Index (CPI), year-over-year inflation in Canada rose by 2.4% in September, higher than August’s year-overyear CPI gain of 1.9%. One notable reason for the uptick in CPI was the price of gasoline. Although prices have continued to fall, the yearover-year decline in September (-4.1%) was considerably less steep than August’s decline of -12.7%.²

In the labour market, Canada’s employment level was up by 0.3%
(approximately 60,000 jobs) in September, while then unemployment rate remained the same, at 7.1%, as in August. The job increase was highest among core-aged men and women (i.e., 25 to 54 years old), but employment declined among people aged 55+, and was steady for youth (ages 15 to 24). Job gains were notable in manufacturing, health care and social assistance, and agriculture, whereas employment decreased in wholesale and retail trade.³

Using a standalone seasonally adjusted annualized rate, housing
starts in Canada increased by 4.1% month-over-month in September, with a total of 277,147 units, up from 245,791 units in August. On a year-over-year basis, housing starts were higher in both Montreal (135%) and Toronto (112%), with a 1% decline in Vancouver versus the year-ago period.⁴ While home sales within Canada declined by 1.7% in September when compared to August, it still marked the strongest September for sales since 2021. The Greater Toronto Area and Winnipeg led the way, while home sales in Greater Vancouver, Calgary and Edmonton saw the largest dip. Nationally, the average sale price rose by a modest 0.7% year-over-year (actual, not seasonally adjusted).⁵

In the Spotlight – Estate Planning Matters: How a Will
Protects Your Legacy

Here’s a question that might surprise you: how much inheritance tax do Canadians pay? The answer? None at all! That’s right—Canada doesn’t have an inheritance tax. And here is what makes proper planning so valuable.

While your beneficiaries won’t pay tax on what they inherit, your estate will need to settle tax obligations before assets are distributed. When someone passes away, the Canada Revenue Agency treats their property as if it had been “sold” the day before death at fair market value, creating a tax obligation that must be satisfied before assets are allocated.

Quick Fact

Only 15% of Canadians have a formal estate plan, even though
80% want to ensure their families receive their inheritance quickly
after they’re gone.

Growing together for good – your vote makes it happen.

Incredible news! Our regulator, FSRA, has approved our merger with Tandia Financial Credit Union. FSRA agrees – this partnership makes sense for our members and communities.


Now it’s your turn to make this exciting vision reality with your “FOR” vote.

By combining our strengths, we’re building an even stronger credit union for you, our members, with:

• Enhanced access through our expanded branch network across Ontario
• Enhanced capabilities to invest in digital innovation
• Continued product innovation with even more competitive rates and expanded financial solutions

We’re in this together – because you’re not just a customer, you’re a member-owner.

Voting opens soon, and we encourage you to vote ‘FOR’ the merger.

Stay connected for details on when and how to cast your vote at TogetherWeWillGrow.ca. If you have any questions, our branch and Contact Centre teams are ready to help. You can also email TogetherWeGrow@alterna.ca to submit questions.

^{1 https://www.bankofcanada.ca/2025/10/fad-press-release-2025-10-29/
2 https://www150.statcan.gc.ca/n1/daily-quotidien/251021/dq251021a-eng.htm
3 https://www150.statcan.gc.ca/n1/daily-quotidien/251010/dq251010a-eng.htm
4 https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-data/data-tables/
housing-market-data/monthly-housing-starts-construction-data-tables
5 https://stats.crea.ca/en-CA/}