Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
Bank of Canada cuts key interest rate again, more cuts ‘reasonable’ if inflation keeps easing
The Bank of Canada cut its key interest rate to 4.5 per cent on Wednesday, with governor Tiff Macklem saying during a news conference that it would be reasonable to expect further rate cuts if inflation continues to ease.
China plans to raise retirement age. Could it happen in Canada?
China is the latest in a slew of countries planning to gradually raise the statutory retirement age as an aging world population is forcing governments to reform their pension plans.
Capital gains tax overhaul projected to raise $17.4 billion, but critics warn of economic fallout
The Parliamentary Budget Officer (PBO) is projecting a $17.4 billion boost in income tax revenues from 2024-’25 to 2028-’29, thanks to the federal government’s latest effort to bolster the nation’s coffers. The policy change, which was introduced in Budget 2024 and came into effect on June 25, increases the capital gains inclusion rate for corporations and trusts from one-half to two-thirds and applies the same rate for individuals on yearly gains exceeding $250,000.
Legal action coming to recover COVID benefit overpayments
The Canada Revenue Agency is ramping up efforts to recover overpayments of pandemic-related benefits. Starting in July, the agency said Thursday it will begin issuing legal warnings and could start to take steps to recover overpayments of all COVID-19 programs such as the Canada Emergency Response Benefit (CERB), the Canada Recovery Benefit (CRB) and the Canada Worker Lockdown Benefit.
Rosenberg says BoC’s rate cut was ‘100% the right move,’ predicts more to come
Bay Street veteran David Rosenberg says the Bank of Canada’s decision on Wednesday to lower its key interest rate by a quarter percentage point to 4.75 per cent was the right move and predicted more cuts in the near future.
Canada’s productivity is lagging behind other G7 countries: Removing internal trade barriers could boost our economy
Canada’s productivity is lagging behind its G7 counterparts, and one in two small businesses say interprovincial trade barriers are part of the problem, according to the Canadian Federation of Independent Business (CFIB)’s latest State of Internal Trade report: Interprovincial Cooperation Report Card. CFIB is urging all levels of governments to take decisive action to eliminate internal trade barriers.
Alicia Planincic: It’s not just you. The Canadian economy isn’t doing as well as it looks.
Business Council of Alberta economist Alicia Planincic seeks to better understand the economic issues that matter to Canadians: from business competitiveness to housing affordability to living standards and our country’s lack of productivity growth. She strives to answer burning questions, tackle misconceptions, and uncover what’s really going on in the Canadian economy.
Consumer insolvencies hit 4-year high in Canada as interest rates weigh on households
Canadian insolvencies increased in the second quarter of the year, hitting a four-year high, as higher interest rates and inflation continue to weigh on Canadians. The latest data from Canada’s Office of the Superintendent of Bankruptcy (OSB) show that total insolvencies – which include both business and consumer bankruptcies and proposals – were up 13.3 per cent in the second quarter of 2024, compared to the same time last year
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