News of the day: Bank of Canada expectations, renting-out pays off, income tax rates, immigration system reset, Barton joins Invest in Canada and more

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The Bank of Canada building in Ottawa.The Bank of Canada building in Ottawa. Photo by HYUNGCHEOL PARK/Postmedia files

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It’s Tuesday, Sept. 1. Here are the top stories we’re following today.

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Canadian economists largely expect the Bank of Canada to keep its overnight rate at 2.25 per cent for the rest of the year, but what policymakers might do in 2027 is less clear as the trade war muddies the country’s economic outlook.

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Alexis Levenson knew she wouldn't be able to afford a house on her own so she bought a Toronto property with an unfinished basement she could convert into a legal rental unit to help pay off her mortgage. Alexis Levenson knew she wouldn’t be able to afford a house on her own so she bought a Toronto property with an unfinished basement she could convert into a legal rental unit to help pay off her mortgage. Photo by Handout/Alexis Levenson

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Alexis Levenson is part of a growing pool of homeowners using their extra space to pay off their mortgage. More than one-third of Canadians said they need to rent out part of their home to afford ownership, up from 25 per cent in 2021, according to a June report from Mortgage Professionals Canada.

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US Individual Income Tax Return Forms 1040 - stock photo on yellow background with a silver pen and calculator In the U.S., the top federal bracket of 37 per cent doesn’t start until US$640,600 for a single filer and US$768,700 for a married couple filing jointly, much higher than in Canada. Photo by Nora Carol Photography/Getty Images

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Strong is a tax system that competes. Ours doesn’t, and pretending otherwise is the actual rupture. That’s the fix within our control, writes Kim Moody.

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The report said the Express Entry system, one of the more popular ways of immigrating to Canada, is not working as intended due to changes introduced in 2022. The report said the Express Entry system, one of the more popular ways of immigrating to Canada, is not working as intended due to changes introduced in 2022. Photo by dennizn - stock.adobe.com

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Canada’s immigration strategy has lost its edge, so rebuilding trust in the system is needed as Ottawa looks to reduce its reliance on the United States and pursue new economic goals, according to a new Royal Bank of Canada report.

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Dominic Barton, chairman of Rio Tinto Group, speaks during an interview on the sidelines at the International Business Leaders' Advisory Council for the Mayor of Shanghai (IBLAC) conference in Shanghai, China, on Sunday, Sept. 22, 2024. Dominic Barton will hold the position of chairman of Invest in Canada on a part-time basis for a three-year term. Photo by Qilai Shen/Bloomberg via Getty Images

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The former Canadian ambassador to China Dominic Barton has been appointed as chair of Invest in Canada’s board of directors following the resignation of the federal agency’s chief executive.

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