Maple Express | October 28, 2026 - Bank of Canada Hikes Rate to 2.5%, Ford Calls It 'a Massive Mistake'

1. Bank of Canada Hikes Key Rate to 2.5%, First Increase Since July 2023

The Bank of Canada raised its policy interest rate by 25 basis points to 2.5 per cent on Wednesday, the first increase since July 2023. In its October Monetary Policy Report, the central bank said the move is meant to control inflation by reducing the risk that high fuel prices spill over into the broader economy. The report named rising energy prices and uncertainty over Canada's trade relationship with the United States as the two biggest risks to the cost of living. Inflation is currently at 3.1 per cent.

Governor Tiff Macklem told a Wednesday morning news conference that the inflation outlook has "deteriorated" since the July report. "With the outlook for inflation substantially higher and the economy showing resilience, an increase in the policy rate is needed to reduce the risk that elevated energy prices could spill over and become generalized inflation," he said. He noted the persistent war in the Middle East means global oil prices will stay higher for longer. Brent crude averaged US$124.96 per barrel in October, about US$35 more than in July. The bank said energy costs have not yet spread broadly to other prices, but cost pressures are building, and 60 per cent of consumer-facing businesses surveyed expect to pass costs on to customers within 12 months.

The bank said growth accelerated through the middle of the year to 3.3 per cent in the second quarter but is expected to slow to 2 per cent in the third. Unemployment has hovered around 6.5 per cent, suggesting it is "more difficult than usual for the unemployed to find work." Macklem warned fourth-quarter growth will likely slow as new U.S. tariffs weigh on activity, with the economy projected to bounce back in 2027. "There could be a need to raise the policy rate further, but given the uncertainties we will proceed carefully," he said.

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2. Ford Calls Rate Hike 'a Massive Mistake' as Finance Minister Stays Measured

Ontario Premier Doug Ford on Wednesday called the Bank of Canada's rate hike "a massive mistake." In a post on social media before the decision was announced, he wrote that higher rates "won't get oil moving through the Strait of Hormuz or lower tariffs on Canadian businesses. They will only make life more expensive for Canadian families and workers, punishing them for something they can't control." The bank raised its key policy rate by 25 basis points to 2.5 per cent.

The bank also raised its 2027 inflation forecast to 3.1 per cent from the 2 per cent it predicted in July, and said the economy is expected to grow by one per cent in 2026 and two per cent in 2027 — a "somewhat" stronger projection than in the summer. Officials said there could be a need to raise the policy rate further, but that Governing Council agreed to proceed carefully given the uncertainties.

Ontario Finance Minister Peter Bethlenfalvy, who delivers the province's fall economic statement on Thursday, had a more modest reaction. Speaking to CTV News at an unrelated news conference before the hike was official, he said he understands Ford's perspective. "Who wouldn't advocate for lower interest rates at a time when people are feeling the impacts of those higher interest rates? But at the end of the day, the Bank of Canada is an independent organization that has all the facts at their disposal, and keeping inflation in check is really important," he said.

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3. WestJet Boeing 737 Collides With Catering Truck at Pearson Airport

A WestJet plane collided with a catering truck at Toronto Pearson International Airport Tuesday night while being towed from a gate, the Transportation Safety Board of Canada confirms. The federal agency says the Boeing 737 was being repositioned on the airport apron during pushback when it came into contact with the truck. There were no passengers or flight crew on board, and no injuries were reported.

The TSB said "there was no intention of flight" at the time of the incident. "We are gathering information, but we are not deploying investigators," a spokesperson told CP24. Pearson airport declined to comment on the collision or provide further details, but confirmed there was "no impact to operations."

Video from the airport Tuesday night showed at least five fire trucks responding with lights and sirens activated. The extent of any damage to the aircraft or the catering truck has not been disclosed. WestJet has not yet responded to CP24's request for comment.

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4. Toronto Police Project Matrix: 44 Arrested, 187 Charges, 8 Guns Seized

Toronto police say they have arrested 44 people, laid 187 charges and seized a large quantity of ammunition, firearms and drugs following a months-long investigation. Dubbed Project Matrix, the "coordinated enforcement initiative" targeted illegal firearms, drug trafficking and related criminal activity. It was launched on March 1 by 55 Division's Major Crime Unit, bringing together several investigations involving people allegedly involved in firearms and drug offences in the east-end division.

In total, investigators seized 792 rounds of ammunition and eight illegal guns, along with "significant quantities" of drugs including cocaine, methamphetamine, fentanyl, MDMA, cannabis, psilocybin and LSD. Police said the most common offences were breach of probation, careless use, handling or storage of a firearm, possession of a Schedule I substance for the purpose of trafficking, and possession of property obtained by crime over $5,000. Further identifying information is not being released because the cases are before the courts.

Det. Sgt. Andy Johnstone of the Major Crime Unit said the initiative will continue, "with investigators focused on identifying, disrupting, and holding accountable those involved in illegal firearms and drug trafficking." "We will remain relentless in these efforts," he said. The investigation is ongoing and anyone with information is asked to call police at 416-808-5500.

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5. Woman, 57, Charged in Thefts From Milton Cemetery Gravesites

Halton Regional Police say a 57-year-old woman is facing charges in connection with an investigation into a string of thefts from gravesites at a cemetery in Milton. Officers were contacted in July after families reported a series of thefts at Milton Evergreen Cemetery. "The thefts began in late June, and items reported stolen include lanterns, shepherd hooks, candles, potted plants and other keepsakes left near gravesites," police said in a release issued Wednesday. About 20 families reported missing items.

On Oct. 24, police executed search warrants at a residence in Milton and seized a number of stolen items. Investigators have released images of the recovered items in an attempt to reunite owners with their belongings. "While the monetary value of some of these items may be relatively low, many hold significant sentimental value for the families who placed them at their loved ones' gravesites," police said. "Recognizing the deeply personal nature of these thefts and the impact on affected families, the HRPS made this investigation a priority."

The suspect faces a number of charges, including theft under $5,000 and possession of property obtained by crime. Police said additional charges are anticipated as investigators identify further victims and catalogue the recovered property, and believe there may be victims who have not yet discovered items were taken. Anyone who believes they had items stolen from Milton Evergreen Cemetery in recent months is asked to email PT1@haltonpolice.ca.

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6. One Dead in Georgina After Struck Deer Hits Another Vehicle: Police

A motorist in York Region has died after police say a deer was struck by another vehicle and hit the car the victim was driving. The collision happened just before 7 p.m. in the town of Georgina, near Ravenshoe and Miles roads, just east of Highway 48.

Police said preliminary information suggests a deer was hit by a vehicle and then the animal collided with another car. The driver of the second vehicle was later pronounced dead. Two people in the vehicle that struck the deer sustained minor injuries.

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7. Korchinski-Paquet Inquest: Brother Says Officers Had Time to See She Wasn't Dangerous

Regis Korchinski-Paquet's brother told a coroner's inquest Wednesday that the officers who responded to reports of a fight involving knives had time to see that neither she nor her family members were a threat once they arrived. Reece Korchinski previously testified that the five officers called to the family's west-end Toronto home in the late afternoon of May 27, 2020, treated his sister like a suspect and took an "aggressive" tone toward her.

He said Wednesday that while he understood police had received information about a fight, knives and some injuries, the officers had the opportunity to assess the situation directly and see that neither he, his sister nor their mother posed a risk. Under questioning from a lawyer representing the police union, he said the officers would have seen the dispute was over by the time they arrived and should have let his sister go into the apartment alone instead of going in with her. Korchinski-Paquet fell to her death from the apartment's 24th-floor balcony while police were in the unit.

The inquest has heard she had a history of seizures from epilepsy, often followed by confusion and aggressive behaviour, and had experienced two seizures that day. Korchinski-Paquet, her brother and their mother all called 911 to report a fight, and each mentioned her diagnosis and seizures on the calls. Her mother, Claudette Beals, testified she called 911 hoping police would take her daughter to Toronto's Centre for Addiction and Mental Health. On Tuesday, Beals said she now feels police should not be involved in incidents involving people experiencing a crisis.

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8. Ontario Matches Federal Tax Break on Capital Investments

Ontario is matching the federal government's recent move to give businesses a tax break on capital investments. Finance Minister Peter Bethlenfalvy made the announcement ahead of Thursday's fall economic statement. Last year, Prime Minister Mark Carney and the federal government allowed businesses to immediately deduct 100 per cent of the cost of some investments, such as machinery, equipment and technology, which applied to about 15 per cent of investment in capital costs.

Last month, Carney updated the measure, allowing two thirds of assets to qualify. Bethlenfalvy says Ontario's measures would provide about $8 billion in relief that will be a boon to the country over the long term by attracting more businesses to the province. He says this brings Ontario's marginal effective tax rate to 3.6 per cent.

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9. Spain High-Speed Train Crash Kills at Least 68; Two Canadians Hurt: Carney

Prime Minister Mark Carney says at least two Canadians were injured in Wednesday's high-speed rail crash in Spain. Carney expressed Canada's solidarity with victims and family members and said Ottawa would help as needed. Spain experienced its second deadly high-speed rail accident this year when one train slammed into another that had stopped on the tracks; the impact shredded cars and killed at least 68 people.

The regional government for Castilla La Mancha confirmed the death toll and said another 58 people needed medical treatment in hospital. Rescue workers continued to search the wreckage for survivors and bodies Wednesday. The accident occurred just before 9 a.m. local time. "At least two Canadians were hurt in this tragedy," Carney told reporters in Ottawa. "Our thoughts are with their families, the victims and their loved ones, in the days and weeks ahead."

Spain's rail operator ADIF said the crash occurred Wednesday morning in the province of Toledo and involved two high-speed trains carrying hundreds of passengers, heading in the same direction from Madrid to Seville. One train, run by state-owned RENFE, ran into the tail of another owned by private company IRYO that had stopped, knocking two of its cars off the track in a rural area between two villages. Construction worker David Gomez told El Pais that he and his brother and a colleague heard the crash, ran to help and cut through fences to reach the injured. Rail service was suspended between Madrid, Ciudad Real and Andalusia. Until this year, there had been no fatal crash on Spain's dedicated high-speed lines since the network opened in 1992.

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10. Nearly $6 Million Donated to Restore 24 Sussex Drive

More than $5.7 million has been donated towards the $50 million goal to renovate 24 Sussex Drive, as the Rideau Hall Foundation launches a new council to spearhead the public fundraising campaign for the prime minister's official residence in Ottawa. The foundation said more than 4,000 contributions have been made, "ranging from individual donations of $25, $50 and $100 to significant commitments."

"We are enormously grateful to the Canadians who have already stepped forward to support this project," Teresa Marques, president and CEO of the RHF, said in a statement. "There are very few opportunities for Canadians to contribute personally to a project of national significance that will still matter generations from now." The foundation also unveiled the Council for 24 Sussex, a group of volunteers who will help mobilize support for the appeal. Robert Prichard, chair of the RHF board, said 24 Sussex is part of the architecture of democracy and that renewing it is not simply about preserving history.

On June 26, Prime Minister Mark Carney launched a national design-and-build competition to rehabilitate and modernize the residence overlooking the Ottawa River. No one has lived at the official residence since June 2015, and the National Capital Commission closed the historic building to the public in 2022 due to health and safety concerns. Built in 1867-68, 24 Sussex has been home to 10 prime ministers and its main building includes 34 rooms. According to the foundation, the maximum donation one person can provide is $5 million, representing 10 per cent of the total goal.

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