Canada's GST Credit Handout Could Boost Consumption, Erode Rate-Cut Hopes -- Market Talk

Dow Jones

Jan 27

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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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) \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 27, 2026 08:02 ET (13:02 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Canada's GST Credit Handout Could Boost Consumption, Erode Rate-Cut Hopes -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCanada's GST Credit Handout Could Boost Consumption, Erode Rate-Cut Hopes -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2026-01-27 21:02</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     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) \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 27, 2026 08:02 ET (13:02 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GST","symbol_name":"Gastar Exploration","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2606842327","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2606842327","pubTimestamp":1769518920,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"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. 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","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"GST":"Gastar Exploration"},"translate_title":"加拿大的商品及服务税信贷发放可能会提振消费，削弱降息希望——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GST":1.5},"content_text":"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) \n\n\n  (END) Dow Jones Newswires\n\n\n  January 27, 2026 08:02 ET (13:02 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}