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Bank of Canada maintains policy rate, continues forward guidance and current pace of quantitative easing – Bank of Canada

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The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank is maintaining its extraordinary forward guidance on the path for the overnight rate. This is reinforced and supplemented by the Bank’s quantitative easing (QE) program, which is being maintained at a target pace of $2 billion per week.

The global economic recovery continued through the second quarter, led by strong US growth, and had solid momentum heading into the third quarter. However, supply chain disruptions are restraining activity in some sectors and rising cases of COVID-19 in many regions pose a risk to the strength of the global recovery. Financial conditions remain highly accommodative.

In Canada, GDP contracted by about 1 percent in the second quarter, weaker than anticipated in the Bank’s July Monetary Policy Report (MPR). This largely reflects a contraction in exports, due in part to supply chain disruptions, especially in the auto sector. Housing market activity pulled back from recent high levels, largely as expected. Consumption, business investment and government spending all contributed positively to growth, with domestic demand growing at more than 3 percent. Employment rebounded through June and July, with hard-to-distance sectors hiring as public health restrictions eased. This is reducing unevenness in the labour market, although considerable slack remains and some groups – particularly low-wage workers – are still disproportionately affected. The Bank continues to expect the economy to strengthen in the second half of 2021, although the fourth wave of COVID-19 infections and ongoing supply bottlenecks could weigh on the recovery.

CPI inflation remains above 3 percent as expected, boosted by base-year effects, gasoline prices, and pandemic-related supply bottlenecks. These factors pushing up inflation are expected to be transitory, but their persistence and magnitude are uncertain and will be monitored closely. Wage increases have been moderate to date, and medium-term inflation expectations remain well-anchored. Core measures of inflation have risen, but by less than the CPI.

The Governing Council judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In the Bank’s July projection, this happens in the second half of 2022. The Bank’s QE program continues to reinforce this commitment and keep interest rates low across the yield curve. Decisions regarding future adjustments to the pace of net bond purchases will be guided by Governing Council’s ongoing assessment of the strength and durability of the recovery. We will continue to provide the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation objective.

Information note

The next scheduled date for announcing the overnight rate target is October 27, 2021. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.

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Pfizer sends kids’ COVID-19 vaccine trial data to U.S. FDA – Global News

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Pfizer Inc. and BioNTech SE on Tuesday submitted initial trial data for their COVID-19 vaccine in children aged 5 to 11 and said they would make a formal request with U.S. regulators for emergency use in the coming weeks.

Coronavirus infections have soared in children, hitting their highest point in early September, according to data from the American Academy of Pediatrics.

The vaccine, which is already authorized in teens aged 12 to 15 and fully approved for ages 16 and up, induced a strong immune response in the target age group in a 2,268-participant clinical trial, the companies said on Sept. 20.


Click to play video: 'U.S. to donate half a billion additional Pfizer COVID-19 vaccines'



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U.S. to donate half a billion additional Pfizer COVID-19 vaccines


U.S. to donate half a billion additional Pfizer COVID-19 vaccines

The Pfizer-BioNTech vaccine was authorized in kids aged 12-15 roughly a month after the companies filed for authorization. If the same timeline is followed for this application, younger children could start receiving their shots as soon as late October.

A rapid authorization could help mitigate a potential surge of cases this fall, with schools already open nationwide.

While kids are less susceptible to severe COVID-19, they can spread the virus to others, including vulnerable populations that are more at risk of severe illness.

The companies said they plan to submit the data to the European Medicines Agency and other regulatory authorities.

Read more:
Pfizer launches large study of oral COVID-19 prevention drug

Data from the companies’ trial showed the two-shot vaccine generated an immune response in children that matched what was previously observed in 16-to-25 year olds. The safety profile was also comparable to the older age group, Pfizer said.

The drugmakers are also testing the vaccine in children aged 2-to-5 and those aged 6 months-to-2 years, with data expected in the fourth quarter.

Moderna’s COVID-19 vaccine is not yet authorized for use in adolescents in the United States, while it has gained authorization for that age group in Europe.

(Reporting by Manas Mishra in Bengaluru; Editing by Saumyadeb Chakrabarty)

© 2021 Reuters

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Trapped miners expected to emerge this morning as rescue operation continues: Vale – CP24 Toronto's Breaking News

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Liam Casey, The Canadian Press


Published Tuesday, September 28, 2021 7:54AM EDT


Last Updated Tuesday, September 28, 2021 11:14AM EDT

Thirty-three of 39 miners who were trapped underground in northern Ontario since Sunday have returned safely to the surface, the workers’ union said Tuesday as a rescue operation continued.

United Steelworkers, which represents workers trapped in Totten Mine near Sudbury, Ont., said they are pleased with the rescue operation thus far.

“A team of doctors is on site, checking workers as they emerge,” said the union, which represents 30 of the 39 staff members trapped in the mine. “No one has been physically injured in the incident or in the evacuation.”

Vale, the company that owns the mine, said it expects everyone to emerge Tuesday.

The employees were trapped in the mine on Sunday when a scoop bucket being sent underground detached and blocked the mine shaft, Vale said.

As a result, it said the “conveyance system” for taking workers to and from the surface became unavailable.

Vale said the trapped miners have been staying in underground “refuge stations,” some 900 to 1,200 metres underground, as part of the company’s standard procedures.

The workers began making their way out Monday night through a “a secondary egress ladder system,” the company said.

“We thank the impacted employees for their patience and perseverance and the mine rescue teams for their tireless dedication and support,” said Gord Gilpin, head of mining for Vale’s Ontario operations. “This has been an incredible team effort.”

A rescue team met the miners Monday and prepared them for the long journey to the surface.

The union said the miners had to scale a system of ladders, with each ladder being about six metres long and with a staging area at every break.

“When an incident like this unfortunately happens, everyone comes together,” said Nick Larochelle, president of USW Local 6500

“The miners support each other, the highly trained mine rescue teams come together and the whole community waits patiently praying for the safe return of every one of the 39 miners to surface.”

The company said the trapped miners had access to food, water and medicine. The union added that miners had been able to make phone calls to both communicate with rescuers and to call loved ones.

Totten Mine opened in 2014, in Worthington, Ont., and produces copper, nickel and precious metals. It employs about 200 people.

The province’s Ministry of Labour, Training and Skills Development, said an inspection team will investigate the incident once the rescue operation is finished.

This report by The Canadian Press was first published Sept. 28, 2021.

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33 trapped miners safe after rescue, 6 more on long trek out of mine near Sudbury – CP24 Toronto's Breaking News

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Liam Casey, The Canadian Press


Published Tuesday, September 28, 2021 7:54AM EDT


Last Updated Tuesday, September 28, 2021 11:14AM EDT

Thirty-three of 39 miners who were trapped underground in northern Ontario since Sunday have returned safely to the surface, the workers’ union said Tuesday as a rescue operation continued.

United Steelworkers, which represents workers trapped in Totten Mine near Sudbury, Ont., said they are pleased with the rescue operation thus far.

“A team of doctors is on site, checking workers as they emerge,” said the union, which represents 30 of the 39 staff members trapped in the mine. “No one has been physically injured in the incident or in the evacuation.”

Vale, the company that owns the mine, said it expects everyone to emerge Tuesday.

The employees were trapped in the mine on Sunday when a scoop bucket being sent underground detached and blocked the mine shaft, Vale said.

As a result, it said the “conveyance system” for taking workers to and from the surface became unavailable.

Vale said the trapped miners have been staying in underground “refuge stations,” some 900 to 1,200 metres underground, as part of the company’s standard procedures.

The workers began making their way out Monday night through a “a secondary egress ladder system,” the company said.

“We thank the impacted employees for their patience and perseverance and the mine rescue teams for their tireless dedication and support,” said Gord Gilpin, head of mining for Vale’s Ontario operations. “This has been an incredible team effort.”

A rescue team met the miners Monday and prepared them for the long journey to the surface.

The union said the miners had to scale a system of ladders, with each ladder being about six metres long and with a staging area at every break.

“When an incident like this unfortunately happens, everyone comes together,” said Nick Larochelle, president of USW Local 6500

“The miners support each other, the highly trained mine rescue teams come together and the whole community waits patiently praying for the safe return of every one of the 39 miners to surface.”

The company said the trapped miners had access to food, water and medicine. The union added that miners had been able to make phone calls to both communicate with rescuers and to call loved ones.

Totten Mine opened in 2014, in Worthington, Ont., and produces copper, nickel and precious metals. It employs about 200 people.

The province’s Ministry of Labour, Training and Skills Development, said an inspection team will investigate the incident once the rescue operation is finished.

This report by The Canadian Press was first published Sept. 28, 2021.

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