Bank of Canada reduces policy rate by 25 basis points to 4½%

The Bank of Canada has reduced its policy rate by 25 basis points to 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%. The global economy is expected to grow at around 3% annually through 2026, with inflation gradually easing. In Canada, economic growth picked up to 1.5% in the first half of 2024, but household spending and housing remain weak. The unemployment rate has risen to 6.4%, and wage growth, while moderating, is still elevated. GDP growth is forecasted at 1.2% in 2024, increasing to 2.1% in 2025 and 2.4% in 2026, as exports strengthen and household spending recovers. The Bank remains committed to restoring price stability, with inflation expected to move closer to the 2% target. bank of canada.

As of June 20, 2024, certain psychotherapists and counselling therapists are exempt from collecting GST/HST on their services. This exemption applies to professionals licensed with provincial regulatory bodies in Ontario, New Brunswick, Nova Scotia, and Prince Edward Island, or those with equivalent qualifications in non-regulated provinces. This change aims to clarify the tax situation for service providers, who may need to close their GST/HST accounts if all their services are exempt. Providers in Quebec should contact Revenu Quebec for specific guidance. For more details, see the Canada Revenue Agency's notices on the exemption for psychotherapy and counselling therapy services.  CRA website. 

The Canada Revenue Agency (CRA) announces summer benefit and credit payments to help Canadians manage finances. Key dates include the GST/HST credit on July 5, Advanced Canada Worker’s Benefit on July 12, Canada Carbon Rebate on July 15, and Canada Child Benefit on July 19. Newcomers can apply for benefits like the GST/HST credit upon arrival. First-time homebuyers can use programs like the First Home Savings Account and GST/HST New Housing Rebate. Register for "My Account" on Canada.ca to manage benefits, track payments, and use new features like digital identity validation for quick registration  CRA website.