Yahoo Finance Canada Videos
With inflation reaching highs not seen in nearly four decades, pressure is ramping up on governments to provide Canadians with some form of relief from high prices. But governments will have to be “very careful” when it comes to inflation relief, says the Public Policy Forum’s Sean Speer. He says that some policies, such as sales tax holidays, could result in higher interest rates if the Bank of Canada has to offset further boosts in demand. However, one area where Speer sees opportunity for the government to provide Canadians with financial relief is with the carbon tax. “There is a policy rationale that could be characterized as coherent and justified, to provide for at least in the short term, some temporary relief from the carbon tax,” Speer said. “That's one area where I think the government could take action without necessarily producing (a) challenge for the Bank of Canada.” If you have any policy-related questions, or feedback about the show, please email firstname.lastname@example.org.