Macklem Speaks: What the Bank of Canada Interview Means for Your Calgary Wallet
It's not every day the Governor of the Bank of Canada sits down for a chat, but when Tiff Macklem speaks, Calgarians should listen. His recent interview with Mark Rendell of The Globe and Mail, alongside a separate discussion with Radio-Canada's Gérald Fillion, might feel like high-finance chatter, but the ripples directly impact your property tax bill, your grocery costs, and how much gas you pump into the car before hitting Deerfoot. In essence, while the big picture might seem stable, the micro-details for those of us living on the ground in Ward 11 (and everywhere else in this city) tell a much tighter story.
The Economic Pulse and Your Pocketbook
Just last week, on December 10, 2025, the Bank of Canada held its target for the overnight rate steady at 2¼%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For the province, this stability has offered some welcome relief: the Alberta Budget 2025 anticipates a $200 million drop in debt servicing costs for 2025-26, bringing the total to a hefty $3 billion. This reduction is largely thanks to the gradual easing of interest rates initiated by the Bank of Canada back in 2024. While that's good news for the provincial balance sheet, consuming about 4.0% of Alberta's total revenue, it’s a different tune when we look at the kitchen table.
The Squeeze on Everyday Calgarians
Despite the big-picture fiscal improvements, the reality for everyday Calgarians remains a significant squeeze. As Natasha Macmillan, a senior business director at Ratehub.ca, points out, essential costs continue to climb. “Grocery prices rose 3.4 per cent year-over-year, and food costs continue to outpace the general rate of inflation,” she notes. So, while the provincial government might be seeing some relief on its debt, your weekly run to the grocery store still feels like a luxury expedition. Add to that the freshly approved City of Calgary 2025 budget, which is set to hit homeowners with a 3.9% increase in municipal property tax. For a typical residential property assessed at $700,000 – a common benchmark near The Bow – that means an estimated additional $13.46 per month. And don't forget the service and utility fees, which will tack on another estimated $5.09 per month based on typical usage. Suddenly, that stable overnight rate feels a lot less stable when it comes to your household budget.
What's Next for Your Bottom Line?
Governor Macklem's words, whether in print or on air, are always a signal of where the economic winds are blowing. But for Calgarians, the crucial question isn't just about the Bank of Canada's next move, but how swiftly and significantly those moves translate into tangible relief – or further pressure – on our monthly expenses. It’s a constant tightrope walk between national economic strategy and the local cost of living that defines our city right now. Keep an eye on those interest rates, but keep an even closer eye on your grocery bill and that property tax notice.
