Amid growing criticism, Macklem says Bank of Canada's independence not under threat | Canada News Media
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Amid growing criticism, Macklem says Bank of Canada’s independence not under threat

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OTTAWA –

As criticism piles on from politicians, pundits and interest groups, Bank of Canada governor Tiff Macklem says he’s felt no threat to the institution’s independence.

“I do not have any concerns about the bank’s independence being under threat,” Macklem said in an interview with The Canadian Press on Wednesday.

Over the last year, the central bank has been under intense scrutiny for both its policy response to the COVID-19 pandemic and the extraordinary steps it has taken this year to clamp down on decades-high inflation.

“Yes, we’re getting lots of tough questions. People should be asking those tough questions. But I have felt no threat to our independence,” Macklem went on to say.

Since March, the Bank of Canada has raised its key interest rate six times consecutively, embarking on one of the fastest monetary policy tightening cycles in its history.

The rate hikes have been in response to inflation reaching levels not seen in nearly four decades. Canada’s annual inflation rate was 6.9 per cent in September. It has been steadily declining since reaching its highest rate this year of 8.1 per cent in June.

The ongoing rate hike cycle has sparked loud criticism from progressive voices concerned about the effect it is having on employment, as forecasters are increasingly expecting higher interest rates to trigger a recession.

In a letter addressed to Prime Minister Justin Trudeau on Oct. 21, NDP Leader Jagmeet Singh said that while he supports the central bank’s independence, he warned that another rate hike will have a “serious impact on families.”

When asked by reporters Tuesday about the letter, Finance Minister Chrystia Freeland acknowledged the economic pain Canadians are facing but noted that institutional stability is important during challenging economic times, with the Bank of Canada’s independence playing an important role in ensuring stability.

Singh’s criticism didn’t stop the Bank of Canada from announcing a half-percentage point rate hike on Wednesday and signalling it wasn’t done raising rates just yet.

During a news conference on Wednesday, Macklem said the Bank of Canada is facing tough decisions, and when decisions are difficult, the central bank’s independence becomes more important.

He later echoed that message in his interview with The Canadian Press.

“Lots of people are giving us advice on what we should do,” Macklem said.

However, there’s a reason why central banks are independent institutions, he added.

“The reason is that there are tough decisions to take, and you do have to look longer term. And it’s at times like this, that when it’s difficult, that you see the value of the independence of central banks.”

Criticism of the Bank of Canada in Ottawa most notably began with official Opposition Leader Pierre Poilievre, who has heavily criticized the central bank’s government bond purchase program at the start of the pandemic.

He’s claimed the bank printed money to enable federal spending, thereby fueling inflation. While running to be leader of the Conservative Party of Canada, Poilievre vowed to fire Macklem if he became prime minister, though he has not explained how he plans to get rid of the governor given the Bank of Canada Act would not give him that power.

Macklem was appointed by the bank’s board of directors with the approval of the governor in council for a seven-year period. His term runs to June 2027.

In response to claims that the Bank of Canada printed money, the central bank took to social media this summer to try to set the record straight, though that has not stopped members of the Conservative party from attacking the central bank.

Many economists and market watchers have criticized the Bank of Canada for not raising interest rates earlier, and the central bank itself has indicated that stimulus measures went on for too long.

Last month, Bank of Canada deputy governor Paul Beaudry said in hindsight, governments and central banks should have withdrawn stimulus measures earlier as economies recovered from the COVID-19 pandemic, which likely would have kept a lid on inflation.

Now, the Bank of Canada has swung in the other direction this year, raising rates aggressively and triggering new criticism.

In its latest monetary policy report, the Bank of Canada revised its economic projections, now accounting for a significant economic slowdown.

It expects economic growth to stall by the end of this year and in the first two quarters of 2023, with growth somewhere between zero and 0.5 per cent, before gaining ground in the second half of next year.

The Bank of Canada has indicated repeatedly that it intends to fulfill its mandate and that restoring price stability is its primary focus.

Singh’s recent letter to the prime minister is part of growing calls for the central bank to stop raising interest rates, or to at least take a more cautious approach with its rate hikes.

Labour groups in particular have been vocal on the issue.

“The Bank of Canada is determined to push the economy into a recession, no matter the impact on individual Canadians who could lose their jobs, their homes and their quality of life,” Bea Bruske, president of the Canadian Labour Congress, said in a statement after Wednesday’s rate decision.

“Canada’s unions are calling on the Bank of Canada to pause interest rate hikes until the impact of previous policy interventions is clear.”

Macklem said the central bank is aiming to balance the risks as it raises interest rates, but said if it’s half-hearted in its decisions, Canadians would suffer from high inflation for longer.

“I am acutely aware that the Bank of Canada, particularly right now, is having a lot of effect on the lives of Canadians. And that’s a big responsibility,” Macklem said.

With Canadians feeling anxious, the governor said the central bank has a responsibility to be transparent with the public and instill confidence that inflation will come down.

“I’d love to get there faster, but it’s going to take some time.”

This report by The Canadian Press was first published Oct. 30, 2022.

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Canada’s Denis Shapovalov wins Belgrade Open for his second ATP Tour title

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BELGRADE, Serbia – Canada’s Denis Shapovalov is back in the winner’s circle.

The 25-year-old Shapovalov beat Serbia’s Hamad Medjedovic 6-4, 6-4 in the Belgrade Open final on Saturday.

It’s Shapovalov’s second ATP Tour title after winning the Stockholm Open in 2019. He is the first Canadian to win an ATP Tour-level title this season.

His last appearance in a tournament final was in Vienna in 2022.

Shapovalov missed the second half of last season due to injury and spent most of this year regaining his best level of play.

He came through qualifying in Belgrade and dropped just one set on his way to winning the trophy.

Shapovalov’s best results this season were at ATP 500 events in Washington and Basel, where he reached the quarterfinals.

Medjedovic was playing in his first-ever ATP Tour final.

The 21-year-old, who won the Next Gen ATP Finals presented by PIF title last year, ends 2024 holding a 9-8 tour-level record on the season.

This report by The Canadian Press was first published Nov. 9, 2024.

The Canadian Press. All rights reserved.



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Talks to resume in B.C. port dispute in bid to end multi-day lockout

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VANCOUVER – Contract negotiations resume today in Vancouver in a labour dispute that has paralyzed container cargo shipping at British Columbia’s ports since Monday.

The BC Maritime Employers Association and International Longshore and Warehouse Union Local 514 are scheduled to meet for the next three days in mediated talks to try to break a deadlock in negotiations.

The union, which represents more than 700 longshore supervisors at ports, including Vancouver, Prince Rupert and Nanaimo, has been without a contract since March last year.

The latest talks come after employers locked out workers in response to what it said was “strike activity” by union members.

The start of the lockout was then followed by several days of no engagement between the two parties, prompting federal Labour Minister Steven MacKinnon to speak with leaders on both sides, asking them to restart talks.

MacKinnon had said that the talks were “progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved” — a sentiment echoed by several business groups across Canada.

In a joint letter, more than 100 organizations, including the Canadian Chamber of Commerce, Business Council of Canada and associations representing industries from automotive and fertilizer to retail and mining, urged the government to do whatever it takes to end the work stoppage.

“While we acknowledge efforts to continue with mediation, parties have not been able to come to a negotiated agreement,” the letter says. “So, the federal government must take decisive action, using every tool at its disposal to resolve this dispute and limit the damage caused by this disruption.

“We simply cannot afford to once again put Canadian businesses at risk, which in turn puts Canadian livelihoods at risk.”

In the meantime, the union says it has filed a complaint to the Canada Industrial Relations Board against the employers, alleging the association threatened to pull existing conditions out of the last contract in direct contact with its members.

“The BCMEA is trying to undermine the union by attempting to turn members against its democratically elected leadership and bargaining committee — despite the fact that the BCMEA knows full well we received a 96 per cent mandate to take job action if needed,” union president Frank Morena said in a statement.

The employers have responded by calling the complaint “another meritless claim,” adding the final offer to the union that includes a 19.2 per cent wage increase over a four-year term remains on the table.

“The final offer has been on the table for over a week and represents a fair and balanced proposal for employees, and if accepted would end this dispute,” the employers’ statement says. “The offer does not require any concessions from the union.”

The union says the offer does not address the key issue of staffing requirement at the terminals as the port introduces more automation to cargo loading and unloading, which could potentially require fewer workers to operate than older systems.

The Port of Vancouver is the largest in Canada and has seen a number of labour disruptions, including two instances involving the rail and grain storage sectors earlier this year.

A 13-day strike by another group of workers at the port last year resulted in the disruption of a significant amount of shipping and trade.

This report by The Canadian Press was first published Nov. 9, 2024.

The Canadian Press. All rights reserved.



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The Royal Canadian Legion turns to Amazon for annual poppy campaign boost

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The Royal Canadian Legion says a new partnership with e-commerce giant Amazon is helping boost its veterans’ fund, and will hopefully expand its donor base in the digital world.

Since the Oct. 25 launch of its Amazon.ca storefront, the legion says it has received nearly 10,000 orders for poppies.

Online shoppers can order lapel poppies on Amazon in exchange for donations or buy items such as “We Remember” lawn signs, Remembrance Day pins and other accessories, with all proceeds going to the legion’s Poppy Trust Fund for Canadian veterans and their families.

Nujma Bond, the legion’s national spokesperson, said the organization sees this move as keeping up with modern purchasing habits.

“As the world around us evolves we have been looking at different ways to distribute poppies and to make it easier for people to access them,” she said in an interview.

“This is definitely a way to reach a wider number of Canadians of all ages. And certainly younger Canadians are much more active on the web, on social media in general, so we’re also engaging in that way.”

Al Plume, a member of a legion branch in Trenton, Ont., said the online store can also help with outreach to veterans who are far from home.

“For veterans that are overseas and are away, (or) can’t get to a store they can order them online, it’s Amazon.” Plume said.

Plume spent 35 years in the military with the Royal Engineers, and retired eight years ago. He said making sure veterans are looked after is his passion.

“I’ve seen the struggles that our veterans have had with Veterans Affairs … and that’s why I got involved, with making sure that the people get to them and help the veterans with their paperwork.”

But the message about the Amazon storefront didn’t appear to reach all of the legion’s locations, with volunteers at Branch 179 on Vancouver’s Commercial Drive saying they hadn’t heard about the online push.

Holly Paddon, the branch’s poppy campaign co-ordinator and bartender, said the Amazon partnership never came up in meetings with other legion volunteers and officials.

“I work at the legion, I work with the Vancouver poppy office and I go to the meetings for the Vancouver poppy campaign — which includes all the legions in Vancouver — and not once has this been mentioned,” she said.

Paddon said the initiative is a great idea, but she would like to have known more about it.

The legion also sells a larger collection of items at poppystore.ca.

This report by The Canadian Press was first published Nov. 9, 2024.

The Canadian Press. All rights reserved.



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