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As expected, Bank of Canada holds interest rate steady at 5%

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The Bank of Canada decided to keep its benchmark interest rate steady at five per cent.

The move was widely expected, as after raising its trendsetting rate 10 times since early 2022 to slow down runaway inflation, the bank has been signalling recently that it thinks it may be nearing the end of that hiking cycle.

The bank’s rate influences the rate that Canadians get on things like variable-rate loans and some savings accounts.

The bank raised the rate to its current level in July, but has stood still ever since, as the Canadian economy shows signs of cooling.

“The slowdown in the economy is reducing inflationary pressures in a broadening range of goods and services prices,” the bank said in announcing its decision.

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Economists who monitor the central bank think it is indeed now done with hiking, and expectations are that the bank will in fact start to cut its rate some time in 2024.

In its statement, the central bank noted that the economy “stalled” in the middle quarters of this year, with GDP contracting in the third quarter and the jobless rate ticking higher from multi-decade lows.

“The economy is no longer in excess demand,” the bank said.

Questions about future hikes

Under normal circumstances, a statement like that would be a clear sign that a central bank is getting to stand on the sidelines, but the bank took great pains to note that it is in fact still willing to raise rates by even more, should the need arise.

“Governing Council is still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed,” the bank, led by governor Tiff Macklem, said.

For economist Royce Mendes with Desjardins, however, that’s mostly an empty threat aimed at making sure markets don’t react too forcefully in assuming cuts are coming.

“Officials are probably just hesitant to prematurely declare victory in their battle with inflation,” Mendes said.

Despite what the bank is saying every six weeks in their policy decisions, Mendes has detected a change in the messaging from bank officials in recent weeks.

“In a recent speech, [Macklem] stated that the economy is approaching balance,” Mendes said. “In central bank speak, that means higher interest rates are working as intended. He also said that interest rates look restrictive enough to bring inflation back to the two per cent target, which is a pretty clear indication that rates will be held steady.”

 

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RCMP arrest second suspect in deadly shooting east of Calgary

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EDMONTON – RCMP say a second suspect has been arrested in the killing of an Alberta county worker.

Mounties say 28-year-old Elijah Strawberry was taken into custody Friday at a house on O’Chiese First Nation.

Colin Hough, a worker with Rocky View County, was shot and killed while on the job on a rural road east of Calgary on Aug. 6.

Another man who worked for Fortis Alberta was shot and wounded, and RCMP said the suspects fled in a Rocky View County work truck.

Police later arrested Arthur Wayne Penner, 35, and charged him with first-degree murder and attempted murder, and a warrant was issued for Strawberry’s arrest.

RCMP also said there was a $10,000 reward for information leading to the arrest of Strawberry, describing him as armed and dangerous.

Chief Supt. Roberta McKale, told a news conference in Edmonton that officers had received tips and information over the last few weeks.

“I don’t know of many members that when were stopped, fuelling up our vehicles, we weren’t keeping an eye out, looking for him,” she said.

But officers had been investigating other cases when they found Strawberry.

“Our investigators were in O’Chiese First Nation at a residence on another matter and the major crimes unit was there working another file and ended up locating him hiding in the residence,” McKale said.

While an investigation is still underway, RCMP say they’re confident both suspects in the case are in police custody.

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

The Canadian Press. All rights reserved.

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26-year-old son is accused of his father’s murder on B.C.’s Sunshine Coast

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RICHMOND, B.C. – The Integrated Homicide Investigation Team says the 26-year-old son of a man found dead on British Columbia’s Sunshine Coast has been charged with his murder.

Police say 58-year-old Henry Doyle was found badly injured on a forest service road in Egmont last September and died of his injuries.

The homicide team took over when the BC Coroners Service said the man’s death was suspicious.

It says in a statement that the BC Prosecution Service has approved one count of first-degree murder against the man’s son, Jackson Doyle.

Police say the accused will remain in custody until at least his next court appearance.

The homicide team says investigators remained committed to solving the case with the help of the community of Egmont, the RCMP on the Sunshine Coast and in Richmond, and the Vancouver Police Department.

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

The Canadian Press. All rights reserved.



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Metro Vancouver’s HandyDART strike continues after talks break with no deal

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, have broken off without an agreement following 15 hours of talks.

Joe McCann, president of Amalgamated Transit Union Local 1724, says they stayed at the bargaining table with help from a mediator until 2 a.m. Friday and made “some progress.”

However, he says the union negotiators didn’t get an offer that they could recommend to the membership.

McCann says that in some ways they are close to an agreement, but in other areas they are “miles apart.”

About 600 employees of the door-to-door transit service for people who can’t navigate the conventional transit system have been on strike since last week, pausing service for all but essential medical trips.

McCann asks HandyDART users to be “patient,” since they are trying to get not only a fair contract for workers but also a better service for customers.

He says it’s unclear when the talks will resume, but he hopes next week at the latest.

The employer, Transdev, didn’t reply to an interview request before publication.

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

The Canadian Press. All rights reserved.

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