In the first, the Bank of Canada raises interest rates at “a reasonable schedule” of four times per year to keep up with growth and contribute to a “less heated” market.
With inflation at the highest level in three decades, Tal said a more aggressive Bank of Canada that raises rates eight times per year could lead to a recession.
The report suggested the policy could be introduced as a response to pandemic deficits and the hot housing market.
Jamie Golombek, managing director of tax and estate planning with CIBC Private Wealth, said in the report that a capital gains tax on the sale of a primary residence could be applied on a prorated basis, determined by the home’s value or or how long it was owned.