TORONTO, ONTARIO--(Marketwired - Sep 9, 2013) - BMO Financial Group today expressed support for the Federal Government's decision to cancel plans to increase employment insurance (EI) premiums and cap premiums at 2013 levels for a period of three years. Maintaining the rate at $1.88 per $100 of insurable earnings is expected to save Canadian businesses $660 million in 2014.
"This is a welcome boost for Canadian small business owners and will add to the increasing optimism we are hearing from our clients," said Steve Murphy, Senior Vice-President, BMO Commercial Banking. "With companies planning to invest in their employees and grow their workforce, new doors will open for expansion into new markets."
"We applaud the measure, as it recognizes the fact that Canada's EI account has improved markedly since the recession, and it is likely that no further increases in EI rates are needed," said Doug Porter, Chief Economist, BMO Capital Markets. "The announcement also leaves open the potential for cuts in the next two years."
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $549 billion as at July 31, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.