Bank of Canada raises key overnight interest rate to .75%

National Post- The Bank of Canada raised its benchmark policy rate Tuesday to 0.75% even though it scaled back its growth outlook on the belief budget cutting among households and governments in advanced economies is expected to “temper” the pace of the global recovery.

GDP in Canada is now expected to expand 3.5% this year and 2.9% in 2011, the central bank said, compared to its previous outlook in April of 3.7% and 3.1% growth, respectively. However, business investment and trade are expected to make a larger contribution to Canadian growth, which up until now has relied heavily on a confident consumer…

Bank of Canada raises key overnight interest rate to .75%

Bank of Canada poised to raise interest rates

The Globe and Mail- Mark Carney is likely to raise borrowing costs for the second straight time Tuesday, while continuing to sound a cautious tone as belt-tightening in Europe, efforts to restrain China’s growth, and plunging consumer confidence in the U.S. cast a pall over Canada’s prospects.

All 12 primary securities dealers and most economists say the central-bank governor will lift his main interest rate by another 25 basis points, to 0.75 per cent. The labour market has recouped most of the jobs lost during the recession and companies are seeing better demand, suggesting the private sector will be able to lead economic growth after federal and provincial stimulus largesse runs out later this year.

Investors are less confident about later decisions, and that may not change this week because Mr. Carney is likely to reiterate that his path to a more neutral, pre-crisis policy stance depends on the developing economic stories around the world…

Bank of Canada poised to raise interest rates – The Globe and Mail

How to reduce the HST hit

Times Colonist- On July 1, Ontario and British Columbia implemented a harmonized sales taxes (HST), combining the federal goods and services tax (GST) of 5% with their provincial sales taxes (PST). The HST rates in those provinces become 13% and 12%, respectively.

Previously, only GST applied to the management fees and operating expenses associated with investment funds. Professionally managed investment portfolios are now subject to HST, including mutual funds, hedge funds, segregated funds, wrap products, charitable trusts and exchange-traded funds…

How to reduce the HST hit

Victoria real-estate sales fall 36 per cent, most in B.C.

Times Colonist-  People looking to buy a home in B.C. are finding a buyer’s market with rising inventories and declining sales putting home-hunters more in control.

Across B.C. in June, realtors recorded 7,722 sales through the realtor-controlled Multiple Listing Service which was down 22.5 per cent from the same month in 2009, the period when biggest markets were just heating back up.

Active listings in inventory, in the meantime, climbed almost 21 per cent to hit 59,232 units in June, which equaled a 9.3-month supply based on the pace of sales, Cameron Muir, the association’s chief economist said.

Muir said the key influences in June were simply an extension of the ones that have dampened demand since they took hold in April: tougher qualifying rules for some mortgages, particularly for first-time buyers and those seeking secondary suites and a shift in long-term mortgage rates…

Victoria real-estate sales fall 36 per cent, most in B.C.

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