Tag: Budget

Central Bank Hikes Interest Rate To 5pc

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The Bank of Canada has raised its benchmark interest rate by 25 basis points. This brings its key interest rate to a high of 5%, with the prime rate now at 7.2%. This is the highest level seen since April 2001. The impact of interest rate hikes can often take…

Fear Mounts As Household Debt Levels Rise

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The household debt to income (DTI) ratio has risen in the third quarter, adding to the woes of already highly indebted Canadian households. The Canadian DTI has reportedly risen sharply to 183.3% in the third quarter of 2022. This is 4.3 points higher than last year. Household DTI reached record…

Governments Act on Foreign Real Estate Speculation

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The federal government has introduced legislation that will institute a ban on non-Canadians buying residential property for a two-year period beginning on January 1, 2023. This temporary ban is intended to help curb speculation by foreign investors that the government claims has caused Canadians to be priced out of the…

N.B. Municipalities Asked to Cut Tax Rates

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Thanks to strong performance in the real estate market and new construction, property assessments in New Brunswick have risen to a total value of $81 billion. This is an increase of $8 billion or 10.9% since 2021. However, the impact of this performance is not quite good news for property…

$5.3B In New Corporate Taxes Expected

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Two Parliamentary Budget Office (PBO) reports estimate that proposed new federal corporate taxes on banks and life insurance companies could reap the government about $5.3 billion over the next five years. $3 billion is estimated to be generated from a one-time 15% windfall tax, dubbed the Canada Recovery Dividend, that…

BOC Announces Fourth Consecutive Interest Rate Hike

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Bank of Canada (BOC) has announced its fourth consecutive interest rate hike to 3.25%, the highest level since early 2008. It has further boosted the bank rate to 3.5% and the deposit rate to 3.25%. the latest hike is again part of measures being used to control spiralling inflation that…

CRA Holding $1.4 Billion In Uncashed Cheques

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The Canada Revenue Agency (CRA) says that it has about $1.4 billion in funds from uncashed cheques sent out to taxpayers. These funds represent a mix of refunds and benefits. The payments can be sent out as cheques or through direct deposit. The CRA had launched a campaign in February…

Canada’s Inflation Rate Hits 8.1percent

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Despite inflation setting the highest record since 1983 by reaching 8.1% in June, the outcome was better than what financial analysts expected. Their earlier predictions were that inflation would rise to 8.4%. Though gas prices were a key driver that saw consumers pay 6.2% more in June as compared to…

Why No Gas Tax Holiday Just Yet

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Statistics Canada is reporting that in May, pump prices rose by 48% as compared to the same period last year thanks to supply constraints and high crude oil prices. This surge was further exacerbated by the growing demand for fuel due to the easing of travel restrictions instituted during the…

Concern Grows Over Possible Recession

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As the Bank of Canada raises interest rates to keep pace with spiralling inflation and the stock market performance dims as the economy runs out of room to grow, it appears a perfect storm is brewing for a recession to strike. The concern is that as the central banks raise…