Skip to main content

Featured

Federal Budget 2025: What It Means for Your Money

The 2025 federal budget introduces a mix of tax cuts, housing measures, and spending shifts that will directly affect Canadians’ day-to-day finances. While the government projects a significant deficit, the plan focuses on affordability and long-term growth. Here are eight key ways it impacts your wallet: 1. Lower Income Taxes The lowest federal tax bracket will be reduced from 15% to 14% starting mid-2025, giving middle-income earners some relief. 2. Vacant Home Measures The Underused Housing Tax will be expanded to discourage vacant and underutilized properties, aiming to free up more housing supply. 3. Student Loan Relief Repayment assistance will be enhanced, with lower income thresholds and capped monthly payments to ease the burden on graduates. 4. Consumer Protection New rules will cut down on excessive banking fees and strengthen protections for financial consumers, especially those with modest incomes. 5. Housing Affordability Programs Funding will support first-...
Post a Comment
Read more

article

Labels

Canada Braces for Lasting Economic Impact Amid U.S. Trade Tensions

 

The Bank of Canada’s Governing Council has issued a stark warning: a protracted trade conflict with the United States could permanently depress the nation’s GDP level. In recent meeting minutes, officials noted that the uncertainty surrounding U.S. trade policy—exacerbated by the threat of significant tariffs—could lead to a lasting reduction in economic output.

With nearly 75% of Canadian exports destined for the U.S., even temporary disruptions could force businesses to recalibrate their investment plans and supply chains, resulting in a permanent shift in the country’s economic potential. The central bank’s decision to trim its key policy rate by 25 basis points to 3% underscores the urgency of addressing these risks amid rising inflation pressures and subdued business confidence.

While the exact outcomes remain uncertain, the consensus among policymakers is clear: unless the trade tensions are resolved, Canada may face a long-term decline in GDP growth, along with accompanying inflationary pressures that could complicate future economic recovery efforts. The Bank of Canada plans to monitor the situation closely, ready to adjust its policy stance as needed to mitigate these challenges.


Labels:

Comments

Post a Comment