Interest is ramping up again in Calgary and Ottawa about new NHL arenas for each city’s downtown, after earlier projects failed to launch. Modern downtown arenas would have obvious attractions for owners and fans in both cities. If the projects proceed, however, it’s a lock that taxpayers will be asked to provide financial support. Should they? And, if they do, on what conditions?
The main purpose of any new building is to help the private owners of the franchise make more money by selling more tickets, luxury boxes, refreshments and advertising, including naming rights. In an ideal world, buildings would be completely privately financed and operate profitably thanks to strong demand, with frequent use…
The Bank of Canada is right to ease off the brakes and see what happens – Financial Post Op-Ed
The Bank of Canada met market expectations last week by raising its policy rate by 25 basis points, to 4.5 per cent. The bank also changed its tone from hesitant caution to guarded optimism. Its message: Hikes might just be over.
In December, the bank made clear that any further tightening would depend on the data. This time, it stressed that if inflation declines in key sectors to the extent it forecast in its latest Monetary Policy Report, it will hold the policy rate steady and pause to assess the impact of its cumulative rate hikes. A terminal peak of 4.5 per cent would also be in line with the most recent C.D. Howe Institute Monetary Policy Council announcement.
We expect — as most Canadians…
Since starting its fight against inflation last March the Bank of Canada has been focused on little else. That is in stark contrast with many of the country’s finance ministers, who have raised spending and increased government hiring. Coordination between our monetary and fiscal authorities would make the Bank’s job a lot easier. Failing that, however, the Bank should continue do what is necessary to get inflation back to target.
The onset of the pandemic saw unprecedented coordination between fiscal and monetary authorities around the globe, including in this country. The Bank of Canada lowered its policy rate to its effective lower bound (0.25 per cent) and then turned to less conventional monetary…
