Skip to main content

Featured

Why Interest Rates Matter for Canadians

Interest rates are the single most powerful lever in Canada's economy.  When the Bank of Canada adjusts its policy rate, the effects reach every household—from the cost of carrying a mortgage to the return on a savings account. With rates currently at 2.25% and significant uncertainty ahead, understanding how rates work has never been more important for your finances. What Is the Bank of Canada's Policy Rate? The Bank of Canada sets the overnight policy rate—the interest rate at which major banks lend money to each other. This rate serves as a benchmark that influences borrowing and lending costs across the entire economy. When the Bank raises or lowers this rate, commercial banks adjust their prime rates accordingly, which directly affects the rates you pay on mortgages, lines of credit, and other loans. The Bank's primary goal is to keep inflation near its 2% target. When inflation runs too hot, the Bank raises rates to cool spending. When the economy slows, it cuts rates...
Post a Comment
Read more

article

Labels

GST Holiday Fails to Deliver Economic Lift, Data Shows Minimal Impact

                                               

New figures reveal that Canada's GST/HST holiday yielded little boost in consumer spending, falling short of expectations. Payment processor Moneris reported a 4% decline in overall spending during the tax break period compared to the previous year, with both the number and size of transactions dropping slightly. Similarly, a survey conducted by the Canadian Federation of Independent Business (CFIB) found that only about 5% of small businesses experienced a noticeable sales increase, while the majority reported no significant change in business activity.

Despite the intended relief, many retailers found the initiative more burdensome than beneficial, citing last-minute adjustments to point-of-sale systems and increased administrative challenges. Although certain sectors, like children's apparel, saw minor gains, these were not enough to offset the overall downturn in consumer spending. The data suggests that the tax holiday may have merely shifted the timing of purchases rather than stimulating additional economic activity.


Labels:

Comments

Post a Comment