Increase in the key rate: no question of improving checks by $400 and $600

The checks promised to help Quebeckers hit by inflation will be delivered before Christmas, promises the Legault government. But there is no question of increasing the amounts of $400 and $600, despite a further increase in the Bank of Canada’s key rate.

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The central bank raised its benchmark rate by 0.50% on Wednesday morning, which will lead to further increases in mortgages and lines of credit. Ottawa hopes to curb soaring prices by forcing households and businesses to reduce their spending.

In a press briefing on Wednesday, Prime Minister François Legault confirmed that Quebec will send by Christmas a check for $600 to each citizen whose income does not exceed $50,000, and $400 for those who earn less than $100. $000 annually.

However, Quebec rejects the idea of ​​greater aid. « The actions we promised are appropriate, » said Finance Minister Eric Girard, according to whom Quebec still has a one in two chance of entering a recession.

Aid will be confirmed in an economic update in early December.

Unlike last time, it will be checks, not tax credits. In other words, the amount will not be reduced if the taxpayer owes an amount to Revenu Québec.

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Accelerated Bill

At the same time, the CAQ government will also increase support for seniors who earn less than $25,000 annually from $411 to $2,000. These, points out Mr. Legault, generally cannot make up for a shortfall by seeking more income.

Quebec also intends to table its bill to limit the increase in government rates, including those of Hydro-Quebec, to 3%.

The Prime Minister wants it to be adopted before the end of the year. “There, it will be important to have the collaboration of the opposition”, underlined François Legault.

However, by convening the Assembly only on November 29, the Prime Minister opted for a short parliamentary session before the holiday recess.

François Legault says he needs time to refine the details of the measures. “There are trade-offs to be made,” he says.

“Obviously, too, as we can see, the economic situation is deteriorating. So that means that economic growth, in Quebec and then around the world, is lower than forecast in the pre-election report. So there is going to be a shortfall in revenue. So, we have to ask ourselves questions: what are the impacts on the choices we want to make. We have to act responsibly,” says François Legault.

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