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British Is Likely To Increase Taxes / Bank Of Canada Maintains Interest Rate 0.25%

British Is Likely To Increase Taxes

British Prime Minister Johnson said on Tuesday (7th) that in response to the pressure on the local medical system caused by the epidemic, coupled with an aging population, the United Kingdom must broadly increase taxation for payment. The tax increases will include workers, enterprises and investors. The British Finance Minister Sunak also emphasized that the government's expenditure on social welfare is constantly expanding, and this situation is irreversible. In addition, the Institute for Fiscal Studies estimates that if the Johnson government’s commitment to improve the healthcare system is met, the ratio of UK tax to GDP will have a chance to climb to a post-World War II high of 35%.

Bank Of Canada Maintains Interest Rate 0.25%

After the interest rate meeting on Wednesday (8th), the Bank of Canada announced as expected to maintain interest rates at 0.25% and maintain its weekly bond purchase plan of 2 billion Canadian dollars. The central bank statement stated that the management committee believes that there is still a considerable amount of excess capacity in the local economy and that it is necessary to continue to support economic recovery with unconventional monetary policies. In the future, the central bank will remain committed to maintaining the policy interest rate at the effective lower limit until the idle production capacity is digested and the 2% inflation target will continue to be achieved. Obviously, the early election on September 20 and the increase in the number of confirmed cases of the new crown and other uncertain factors are prompting the Bank of Canada to maintain a more cautious monetary policy stance in the short term, which once put pressure on the Canadian dollar and fell below the 1.27 to 1 dollar level.

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