Bank of Canada

Starting November 1, non-bank businesses offering payment services in Canada must register with the Bank of Canada under a new regulatory regime aimed at protecting consumers. The Bank estimates the regime will apply to around 3,000 companies, including fintechs and other firms involved in online payments.

The move follows global trends in countries like the U.S. and U.K. to regulate non-bank payment providers. However, determining which businesses need to register is complex, with exemptions for incidental activities and internal transactions. Firms that miss the deadline but act quickly may avoid penalties, according to Bank of Canada officials.

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In a move that will surely impact Canada’s economy, the Bank of Canada has reduced its benchmark interest rate by 0.25% to 4.5% as Governor Tiff Macklem focuses on avoiding a national recession. The economic growth forecast for 2024 was lowered to 1.2%, with 2025’s outlook at 2.1%.

The BoC anticipates inflation reaching its 2% target toward the end of 2025. Macklem mentioned that further rate cuts are possible. “If inflation continues to ease broadly in line with our forecast, it is reasonable to expect further cuts in our policy interest rate,” he stated. “The timing will depend on how we see these opposing forces playing out.” 

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