0802 ET - It could be party time this summer for Canadians, Scotiabank's Derek Holt says of a federal plans for a tax hand-out he reckons smells like election priming. Prime Minister Carney's government plans a one-time 50% boost to the goods and services tax credit by no later than June, and a lift in the existing GST credit amount by 25% for five years. Holt estimates the combination should boost nominal growth in disposable income to about 6% on-quarter at a seasonally adjusted, annualized rate, which is about double the run rate. After, growth drops back to a still healthy 3%-3.5%. The economist says that given past tendencies, it could mean consumption growth pops higher. It also might be another nail in the coffin of Bank of Canada rate cut hopes, he adds. (robb.stewart@wsj.com; @RobbMStewart)

(END) Dow Jones Newswires

January 27, 2026 08:02 ET (13:02 GMT)

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