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Bank of Canada makes emergency interest rate cut – CBC.ca

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The Bank of Canada has made an unexpected rate cut, cutting the central bank’s benchmark interest rate by 50 basis points to 0.75 per cent.

The central bank already cut its rate to 1.25 per cent at a previously scheduled meeting on March 4 to help counteract the impact of the coronavirus. Friday’s decision takes that one step further.

“This unscheduled rate decision is a proactive measure taken in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices,” the bank said.

Under normal circumstances, the bank meets every six weeks to set its interest rate, and only takes action outside of those time frames when the situation calls for it.

Friday’s decision shows just how seriously Canadian policy-makers are taking the coronavirus situation. It’s the first time the bank has moved its rate higher or lower outside of a scheduled meeting since the financial crisis in 2009.

“Pretty sure I’ve never seen that: a rate cut on a Friday afternoon,” said Doug Porter, chief economist with the Bank of Montreal. “Shows you just how unusual these times are to have the Bank of Canada to make an announcement like that at two o’clock on a Friday afternoon.”

The bank’s next scheduled rate decision is set for April 15, at which point the central bank says it will “provide a full update of its outlook for the Canadian and global economies.”

Porter thinks the bank will indeed cut again, but likely not before that scheduled meeting. “At this point, we’re penciling in another 50-basis-point cut … which will take them down to 0.25, which is as low as we got during the financial crisis.”

The bank’s rate impacts the rates that Canadian savers and borrowers get for things like savings accounts and mortgages.

All things being equal, the bank raises its rate when it wants to cool down an economy that is overheating with high inflation. It cuts when it wants to encourage people to borrow, spend and invest.

TD Bank economist Brian DePratto called the move “a solid step in the right direction.”

“Seemingly, every day this week has brought new challenges and negative headlines related to COVID-19,” he said. “A response was clearly required — and not only was one delivered, but it came with the promise of more to come.”

Indeed, Bank of Canada governor Stephen Poloz said the bank “stands ready to adjust monetary policy further,” but at 0.75 per cent, there is only so much room to cut.

Negative rates ‘unlikely’

While the bank has other policy tools at its disposal, Poloz told reporters following the rate cut that he “doesn’t like the idea of negative rates that much,” referring to the policy that other central banks have implemented, where their rates actually go below zero.

Negative rates are “very unlikely to be needed” in Canada, Poloz said.

The global coronavirus pandemic has many worrying about what will happen to Canada’s economy as workers are quarantined and trade routes grind to a halt.

The Royal Bank of Canada said Friday it expects Canada to go into a recession later this year.

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Unifor says workers at Walmart warehouse in Mississauga, Ont., vote to join union

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TORONTO – Unifor says workers at a Walmart warehouse in Mississauga, Ont., have voted to join the union.

The union says it’s Walmart’s first warehouse to unionize in Canada.

Unifor national president Lana Payne says the employees stood up for their rights and the union is excited to get to work on their first collective agreement.

Unifor’s campaign at Walmart’s facility began in December 2023.

The vote was held from Sept. 10 to 12.

Unifor represents 315,000 workers across the country.

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

The Canadian Press. All rights reserved.



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Canada to donate up to 200,000 vaccine doses to combat mpox outbreaks in Africa

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The Canadian government says it will donate up to 200,000 vaccine doses to fight the mpox outbreak in Congo and other African countries.

It says the donated doses of Imvamune will come from Canada’s existing supply and will not affect the country’s preparedness for mpox cases in this country.

Minister of Health Mark Holland says the donation “will help to protect those in the most affected regions of Africa and will help prevent further spread of the virus.”

Dr. Madhukar Pai, Canada research chair in epidemiology and global health, says although the donation is welcome, it is a very small portion of the estimated 10 million vaccine doses needed to control the outbreak.

Vaccine donations from wealthier countries have only recently started arriving in Africa, almost a month after the World Health Organization declared the mpox outbreak a public health emergency of international concern.

A few days after the declaration in August, Global Affairs Canada announced a contribution of $1 million for mpox surveillance, diagnostic tools, research and community awareness in Africa.

On Thursday, the Africa Centres for Disease Control and Prevention said mpox is still on the rise and that testing rates are “insufficient” across the continent.

Jason Kindrachuk, Canada research chair in emerging viruses at the University of Manitoba, said donating vaccines, in addition to supporting surveillance and diagnostic tests, is “massively important.”

But Kindrachuk, who has worked on the ground in Congo during the epidemic, also said that the international response to the mpox outbreak is “better late than never (but) better never late.”

“It would have been fantastic for us globally to not be in this position by having provided doses a much, much longer time prior than when we are,” he said, noting that the outbreak of clade I mpox in Congo started in early 2023.

Clade II mpox, endemic in regions of West Africa, came to the world’s attention even earlier — in 2022 — as that strain of virus spread to other countries, including Canada.

Two doses are recommended for mpox vaccination, so the donation may only benefit 100,000 people, Pai said.

Pai questioned whether Canada is contributing enough, as the federal government hasn’t said what percentage of its mpox vaccine stockpile it is donating.

“Small donations are simply not going to help end this crisis. We need to show greater solidarity and support,” he said in an email.

“That is the biggest lesson from the COVID-19 pandemic — our collective safety is tied with that of other nations.”

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

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

The Canadian Press. All rights reserved.



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Man arrested in Quebec for alleged plot to kill Jews in NYC returns to court Dec. 6

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MONTREAL – A 20-year-old man arrested over an alleged Islamic State terror plot to kill Jews in New York City will return to court in December in Montreal.

Muhammad Shahzeb Khan, a Pakistani national living in Ontario, was arrested last week in Ormstown, Que., allegedly on his way across the border into New York state.

Khan has been charged in the United States with one count of attempting to provide material support and resources to a terrorist organization, and officials are seeking to have him extradited to stand trial.

He was not present for a hearing today in Quebec Superior Court, where lawyers said they are waiting for extradition documents and for authorization from Canadian officials before proceeding in the case, which will return before a judge on Dec. 6.

U.S. authorities allege that Khan, also known as Shahzeb Jadoon, intended to use “automatic and semi-automatic weapons” in a mass shooting at a Jewish centre in Brooklyn around Oct. 7, the one-year anniversary of the Hamas attack on Israel.

Authorities allege he began planning his attack in November 2023.

Earlier this week, federal Immigration Minister Marc Miller said Khan arrived in Canada in June 2023 on a student visa.

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

The Canadian Press. All rights reserved.



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