Fiscal Agents - Money Management Newsletter - September 2023

Bank of Canada hikes done, but interest rates to stay high: economists

Only one cut to come in first half of next year

By Derek Decloet, posted on Financial Post

From the article: The Bank of Canada will hold its key interest rate near the current level of five per cent until the third quarter of 2024, economists say, with growth picking up momentum to end this year.

Governor Tiff Macklem and his policymakers are finished hiking, according to the median response in a Bloomberg survey of economists. But the central bank will cut rates only once in the first half of next year, according to the survey, and the policy rate will still be at 3.5 per cent in early 2025.

Retirement security is getting better, but Canadians aren’t buying it
By Pamela Haven, Financial Post

For the first time in a decade, nearly all developed countries in the Natixis Investment Managers’ Global Retirement Index received a higher score for retirement security than the year before.

The index, released this month, showed improved economic conditions in the most countries, including Canada, mainly in employment growth, wages gains and interest rates.

Yet Natixis research shows that this optimism is not shared by Canadians in their everyday life.

CRA offers no relief on stiff penalties for late-filing UHT returns

Tax agency releases underused housing tax self-assessment tool

By Rudy Mezzetta, Advisor’s Edge

The Canada Revenue Agency (CRA) is not providing relief to affected homeowners who get hit with penalties or interest for failing to file an underused housing tax (UHT) return and pay any applicable UHT after Oct. 31.

Earlier this year, the tax agency gave affected homeowners a six-month extension beyond the official deadline of April 30, 2023 to file a UHT return and pay any UHT tax for the 2022 calendar year without incurring penalties and interest.