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Benjamin Tal

CIBC’s Benjamin Tal on inflation, interest rates and CRE

The Bank of Canada is attempting to convince people it’s serious about decreasing inflation, which reached 6.9 per cent last month – the highest rate in 31 years.

Steve McLean, RENX, June 8, 2022

CIBC managing director and deputy chief economist Benjamin Tal told an audience at the June 7 Land & Development conference at the Metro Toronto Convention Centre, however, that rising interest rates should be at least as big a concern.

The Bank of Canada increased its policy interest rate by half a percentage point on June 1 to 1.5 per cent as part of its effort to get the inflation rate back to its two per cent target.

Housing subdivision

Real estate and the 2022 federal budget

The Canadian real estate sector is experiencing a roller-coaster year, with markets catching fire in regions across the country, then cooling down on the heels of interest rate increases and changing mortgage stress tests.

Melissa Aveiro, Ontario Regional Tax Leader & National Real Estate and Construction Tax Leader, MNP, May 17, 2022

 

The 2022 federal budget attempted to address some of the challenges facing Canadians, although issues around supply chains and rising costs remain.

While many of the announced measures in Budget 2022 are steps in the right direction, specifically in the housing sector, more can be done to reduce roadblocks in the real estate and construction sector. In this article, we break down several of the measures that could impact you and your business.

Business tax measures

Among the business-related tax measures announced in the budget was the change to the small business deduction, which has been expanded to include Canadian-controlled private corporations with higher capital balances. The budget proposed to increase the upper range of the taxable capital range to $50 million, from $15 million.

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