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Inflation in Canada: Latest interest rate decision

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OTTAWA –

The Bank of Canada ended the year with another interest rate hold as the economy slows and forecasters speculate on the timing of rate cuts in 2024.

The central bank announced its decision to keep its key interest rate steady at five per cent Wednesday, encouraged by evidence that higher rates are helping bring inflation down.

“Higher interest rates are clearly restraining spending: consumption growth in the last two quarters was close to zero, and business investment has been volatile but essentially flat over the past year,” the central bank said in a statement detailing its final decision of the year.

The combination of weaker growth and a cooling job market suggests demand is no longer outpacing supply in the economy, the central bank added.

This slowdown, the Bank of Canada has argued, is necessary to restore price stability.

The decision Wednesday carried few surprises as it marked the third consecutive time the Bank of Canada has opted to keep its key rate unchanged.

But as financial markets place their bets on when the central bank may start cutting rates — and Canadians eagerly await that turning point — the central bank is giving no hints on when that may happen.

Instead, it’s still keeping the door to more rate hikes ajar.

“Governing council is still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed,” the central bank said, noting it wants to see underlying price pressures ease further.

But economists and market watchers don’t buy that more rate hikes are really on the table.

“They’re still trying to talk tough. They’re trying to tell people that it’s not a slam dunk that …they’re going to be cutting interest rates,” said BMO chief economist Douglas Porter. “But very few people are listening to them anymore.”

The central bank will have to switch to cutting interest rates soon enough, TD director of economics James Orlando said, as the unemployment rate continues to rise and spending in the economy takes a hit. But for now, it makes sense for the central bank to keep its guard up.

“A hold today was the only option for the BoC,” wrote Orlando in a note to clients. “But with inflation still above three per cent, we get why the BoC isn’t ready to declare victory.”

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Inflation has eased considerably over the last year, reaching 3.1 per cent in October. But economists are mindful that inflation has been somewhat volatile lately, and more evidence is needed that underlying price pressures are easing.

While financial markets are predicting rate cuts to start as early as the first quarter of next year, some commercial banks are taking a more cautious approach.

RBC, for example, expects the Bank of Canada to start cutting interest rates in the second half of next year.

“Our view is that they’re only going to start sort of cutting in this second half of 2024, once (it) become more obvious that inflation is truly going to return back to target and stay there,” said economist Claire Fan.

The Bank of Canada’s next rate decision, along with its updated economic forecasts, is set for Jan. 24.

A key factor that will drive the central bank’s decision on when to cut interest rates will be how the economy slows in the coming months.

Weighed down by higher borrowing costs, the Canadian economy has struggled to consistently grow this year. The most recent GDP report showed the economy contracted by 1.1 per cent on an annualized basis in the third quarter.

The labour market has also lost much of its steam as the unemployment rate creeps higher, reaching 5.8 per cent.

These trends are expected to continue.

Porter says the Canadian economy has not yet fully absorbed the Bank of Canada’s hefty rate hikes, suggesting a sluggish year is ahead.

“The economy is still trying to digest those rate hikes that we’ve had in the last two years,” Porter said.

“Our official view is for GDP to rise 0.5 per cent next year, which is extremely slow. It maybe doesn’t quite rise to the level of the definition of recession, but it’s going to feel pretty sluggish.”

This report by The Canadian Press was first published Dec. 6, 2023.

 

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Canada’s Marina Stakusic falls in Guadalajara Open quarterfinals

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GUADALAJARA, Mexico – Canada’s Marina Stakusic fell 6-4, 6-3 to Poland’s Magdalena Frech in the quarterfinals of the Guadalajara Open tennis tournament on Friday.

The 19-year-old from Mississauga, Ont., won 61 per cent of her first-serve points and broke on just one of her six opportunities.

Stakusic had upset top-seeded Jelena Ostapenko of Latvia 6-3, 5-7, 7-6 (0) on Thursday night to advance.

In the opening round, Stakusic defeated Slovakia’s Anna Karolína Schmiedlová 6-2, 6-4 on Tuesday.

The fifth-seeded Frech won 62 per cent of her first-serve points and converted on three of her nine break point opportunities.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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Kirk’s walk-off single in 11th inning lifts Blue Jays past Cardinals 4-3

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TORONTO – Alejandro Kirk’s long single with the bases loaded provided the Toronto Blue Jays with a walk-off 4-3 win in the 11th inning of their series opener against the St. Louis Cardinals on Friday.

With the Cardinals outfield in, Kirk drove a shot off the base of the left-field wall to give the Blue Jays (70-78) their fourth win in 11 outings and halt the Cardinals’ (74-73) two-game win streak before 30,380 at Rogers Centre.

Kirk enjoyed a two-hit, two-RBI outing.

Erik Swanson (2-2) pitched a perfect 11th inning for the win, while Cardinals reliever Ryan Fernandez (1-5) took the loss.

Blue Jays starter Kevin Gausman enjoyed a seven-inning, 104-pitch outing. He surrendered his two runs on nine hits and two walks and fanned only two Cardinals.

He gave way to reliever Genesis Cabrera, who gave up a one-out homer to Thomas Saggese, his first in 2024, that tied the game in the eighth.

The Cardinals started swiftly with four straight singles to open the game. But they exited the first inning with only two runs on an RBI single to centre from Nolan Arendao and a fielder’s choice from Saggese.

Gausman required 28 pitches to escape the first inning but settled down to allow his teammates to snatch the lead in the fourth.

He also deftly pitched out of threats from the visitors in the fifth, sixth and seventh thanks to some solid defence, including Will Wagner’s diving stop, which led to a double play to end the fifth inning.

George Springer led off with a walk and stole second base. He advanced to third on Nathan Lukes’s single and scored when Vladimir Guerrero Jr. knocked in his 95th run with a double off the left-field wall.

Lukes scored on a sacrifice fly to left field from Spencer Horwitz. Guerrero touched home on Kirk’s two-out single to right.

In the ninth, Guerrero made a critical diving catch on an Arenado grounder to throw out the Cardinals’ infielder, with reliever Tommy Nance covering first. The defensive gem ended the inning with a runner on second base.

St. Louis starter Erick Fedde faced the minimum night batters in the first three innings thanks to a pair of double plays. He lasted five innings, giving up three runs on six hits and a walk with three strikeouts.

ON DECK

Toronto ace Jose Berrios (15-9) will start the second of the three-game series on Saturday. He has a six-game win streak.

The Cardinals will counter with righty Kyle Gibson (8-6).

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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Stampeders return to Maier at QB eyeing chance to get on track against Alouettes

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CALGARY – Mired in their first four-game losing skid in 20 years, the Calgary Stampeders are going back to Jake Maier at quarterback on Saturday after he was benched for a game.

It won’t be an easy assignment.

Visiting McMahon Stadium are the Eastern Conference-leading Montreal Alouettes (10-2) who own the CFL’s best record. The Stampeders (4-8) have fallen to last in the Western Conference.

“Six games is plenty of time, but also it is just six games,” said Maier. “We’ve got to be able to get on the right track.”

Calgary is in danger of missing the playoffs for the first time since 2004.

“I do still believe in this team,” said Stampeders’ head coach and general manager Dave Dickenson. “I want to see improvement, though. I want to see guys on a weekly basis elevating their game, and we haven’t been doing that.”

Maier is one of the guys under the microscope. Two weeks ago, the second-year starter threw four interceptions in a 35-20 home loss to the Edmonton Elks.

After his replacement, rookie Logan Bonner, threw five picks in last week’s 37-16 loss to the Elks in Edmonton, the football is back in Maier’s hands.

“Any time you fail or something doesn’t go your way in life, does it stink in the moment? Yeah. But then the days go on and you learn things about yourself and you learn how to prepare a little bit better,” said Maier. “It makes you mentally tougher.”

Dickenson wants to see his quarterback making better decisions with the football.

“Things are going to happen, interceptions will happen, but try to take calculated risks, rather than just putting the ball up there and hoping that we catch it,” said Dickenson.

A former quarterback himself, he knows the importance of that vital position.

“You cannot win without good quarterback play,” Dickenson said. “You’ve got to be able to make some plays — off-schedule plays, move-around plays, plays that break down, plays that aren’t designed perfectly, but somehow you found the right guy, and then those big throws where you’re taking that hit.”

But it’s going to take a team effort, and that includes the club’s receiving corp.

“We always have to band together because we need everything to go right for our receivers to get the ball,” said Nik Lewis, the Stampeders’ receivers coach. “The running back has to pick up the blitz, the o-line has to block, the quarterback has to make the right reads, and then give us a catchable ball.”

Lewis brings a unique perspective to this season’s frustrations as he was a 22-year-old rookie in Calgary in 2004 when the Stamps went 4-14 under coach Matt Dunigan. They turned it around the next season and haven’t missed the playoffs since.”

“Thinking back and just looking at it, there’s just got to be an ultimate belief that you can get it done. Look at Montreal, they were 6-7 last year and they’ve gone 18-2 since then,” said Lewis.

Montreal is also looking to rebound from a 37-23 loss to the B.C. Lions last week. But for head coach Jason Maas, he says his team’s mindset doesn’t change, regardless of what happened the previous week.

“Last year when we went through a four-game losing streak, you couldn’t tell if we were on a four-game winning streak or a four-game losing streak by the way the guys were in the building, the way we prepared, the type of work ethic we have,” said Maas. “All our standards are set, so that’s all we focus on.”

While they may have already clinched a playoff spot, Alouettes’ quarterback Cody Fajardo says this closing stretch remains critical because they want to finish the season strong, just like last year when they won their final five regular-season games before ultimately winning the Grey Cup.

“It doesn’t matter about what you do at the beginning of the year,” said Fajardo. “All that matters is how you end the year and how well you’re playing going into the playoffs so that’s what these games are about.”

The Alouettes’ are kicking off a three-game road stretch, one Fajardo looks forward to.

“You understand what kind of team you have when you play on the road because it’s us versus the world mentality and you can feel everybody against you,” said Fajardo. “Plus, I always tend to find more joy in silencing thousands of people than bringing thousands of people to their feet.”

This report by The Canadian Press was first published Sept. 13, 2024.



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