Markets were not surprised by today’s Bank of Canada announcement to hike its overnight target rate by 25 basis points to 1.5 per cent. They had factored in a very high probability of an increase. And, consistent with a stated desire to improve its communications with both market participants and “the soccer dad,” it was a speech and a press conference that set the stage.
Governor Stephen Poloz’s speech on June 27 was an important factor in moving market expectations. By the end of the news conference that followed his speech, markets were confident of a hike. The theme of the speech was transparency and communications. By significantly shifting market expectations in the direction of a rate hike, the speech and news conference…
Canadians want a reliable retirement income so they can enjoy life without worrying about outliving their savings. They also want flexibility so they can adapt to changing circumstances, particularly relative to their health. Delaying receipt of public-pension benefits — Canada or Quebec Pension Plans (C/QPP) and Old Age Security (OAS) — to age 75 can help on both counts.
Retirement planning is challenging. Most of us struggle with how much money we need to save, and we see post-retirement financial decisions as a separate and secondary consideration. Yet, as we show in our recent C.D. Howe Institute study, the manner in which savings are used in retirement has a direct impact on how much we need to accumulate prior to retirement…
How did businesses in Ontario handle the January minimum-wage increase? - Globe and Mail Op-Ed
The largest one-time increase in the minimum-wage rate that any province experienced over the past two decades happened in Ontario at the beginning of the year. The early results are in: As anticipated, it has caused a reduction in youth employment, but this dramatic minimum-wage increase has also extensively hurt the employment of older workers.
The Ontario government increased its minimum wage to $14 an hour on Jan. 1 from $11.40 an hour; a 23-per-cent boost. The real impact of a higher minimum wage, however, depends on how businesses absorb the increase in operating expenses when labour costs go up.
Did employers cut back on the number of workers?
Comparing the pre- and post-January three-month averages…
