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Inflation expectations raise stakes for Bank of Canada – CTV News

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TORONTO –

The risk of inflation becoming entrenched in Canada’s economy is growing, say analysts, as surging prices for gas and other highly visible consumer items undercut efforts by the Bank of Canada to keep expectations for price increases in check.

Once inflation gets built into an economy it tends to become more difficult to bring under control without triggering an economic slowdown, or even a recession.

Canada’s consumer price index data for May, due on Wednesday, which will include new basket weights that are unlikely to have a major impact, is expected to show inflation climbing above April’s three-decade-high of 6.8 per cent.

What central banks dread is a situation in which price increases become self-fulfilling – expectations for higher prices cause people to raise wage demands and accelerate purchases, driving further price increases.

The Bank of Canada is fighting a “battle” to control inflation expectation, said Derek Holt, head of capital markets economics at Scotiabank, who projects a 7.8 per cent rate of growth for May CPI.

“They missed their chance to nip it in the bud and now you’ve got consumers and businesses who aren’t fussing over what’s driving it. They are engaged in extrapolative behavior, which is the path central banks always want to avoid.”

As in other countries, much of the reason for soaring prices comes from supply constraints related to the COVID-19 pandemic and the war in Ukraine. But as inflation lingers, expectations that price pressures will continue have climbed.

A Conference Board of Canada survey for May shows that 78 per cent of Canadians expect inflation to exceed the BoC’s target of two per cent over the next three years, up from 77 per cent in April.

Investors have taken note, betting that the central bank will match the Federal Reserve’s recent three-quarter-percentage-point rate increase when it next meets on July 13, which would be the biggest hike in 24 years.

The threat of unmoored inflation expectations comes as Canadian gas prices climbed in June to a record high of $2.15 a litre.

“Central bankers can’t be too happy with what’s happening at the gas pumps, since it’s one of the prices that households most closely track, and along with some other staples like milk and bread, has more influence over perceptions of inflation than its actual weight in the consumer basket,” said Avery Shenfeld, chief economist at CIBC Capital Markets.

To keep expectations anchored while it unwinds stimulus in an overheating economy, the BoC has taken the rare step of providing guidance on the path of rates, saying they could move above the top of the two to three per cent neutral range.

On July 4 the central bank is due to release its quarterly surveys of businesses and households, which includes measures of their inflation outlook.

“I think the surveys will keep pushing up,” Holt said. “It’s a faster and steeper pace of rate hikes in order to correct those expectations.”

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‘McGregor-Mayweather rematch in the making’

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Los Angeles, United States of America (USA)- Fighthype.com has reported that Conor McGregor and Floyd Mayweather are in discussions over holding a second bout.

Mayweather beat McGregor in their huge clash back in June 2017 but McGregor has hinted at a possible rematch in a post on his Instagram account.

The UFC superstar posted a cryptic post hinting at a second bout by sharing a picture of their 2017 clash and writing, “I accept.”

However, it’s uncertain as to whether a rematch between the pair would be another exhibition bout, or whether Mayweather would make it one more professional fight.

Meanwhile, YouTuber, Jake Paul, has repeatedly claimed that Mayweather still hasn’t paid him following last year’s exhibition bout. Their eight-round exhibition bout went to a draw as Mayweather was unable to knockout Paul, “Floyd Mayweather is broke. I have been saying it all the time. I think he probably spent it on the girls he pays to be around him. He’s hard to hit, but even harder to collect money from. Who should I fight next?”

However, Mayweather has since dismissed the accusations claiming that Paul has suggested that the pair should have a second exhibition bout.

“This is the guy who said he didn’t get paid, which we know is truly false, which is why I don’t entertain the bull*** a lot of the time. We know he got paid and if he didn’t get paid he wouldn’t be trying to get another payday. It is so crazy that Logan Paul wants to do an exhibition again but it is the same guy that said he didn’t get paid. It is what it is,” said Mayweather.

Mayweather was expected to earn US$64 million from the fight, with Logan receiving US$18.5 million of the purse.

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G7: Canada to elevate small Commonwealth nations' concerns – CTV News

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KIGALI, Rwanda –

Prime Minister Justin Trudeau headed to the G7 summit in Germany on Saturday without a consensus from the Commonwealth to condemn the Russian invasion of Ukraine, but with a chorus of countries calling for help to overcome the fallout of the war.

Trudeau and Foreign Affairs Minister Melanie Joly arrived in Kigali, the capital of Rwanda, on Wednesday for the Commonwealth Heads of Government meeting, which has been dominated by the concerns of nations that are suffering from food scarcity. Trudeau departed for the G7 talk slater in the day.

In the final communique from the Commonwealth summit, the 54 participating countries said they discussed the conflict in Ukraine, ” underscored the need to respect the territorial integrity and sovereignty of all states,” and ” emphasized that all countries must seek peaceful resolution to all disputes in accordance with international law.”

The countries stopped short of condemning Russia, as Trudeau and United Kingdom Prime Minister Boris Johnson have done throughout the summit.

“I can assure you that the topic of standing up for Ukraine was much discussed,” Trudeau said at a press conference following the conclusion of the summit, referencing “strong language” in the communique.

Most Commonwealth Nations condemned Russia’s actions at a United Nations vote in March, but 10 abstained. Among them was India, whose Prime Minister Narendra Modi opted not to attend the Commonwealth summit and instead spoke virtually with the leaders of Russia, China, Brazil and South Africa.

Trudeau said Russian President Vladimir Putin has run a disinformation campaign and has even been “telling outright lies,” including blaming the food security crisis on Western sanctions against Russia.

He said food shortage stems from Russia’s illegal actions, including blockade at key ports, as well as the deliberate targeting of Ukrainian grain storage facilities through cruise missile strikes.

“I was very clear with our friends and partners around the table, and not just clear on Russia’s responsibility, but on how Canada and the West are stepping up,” Trudeau said.

Canada will be raising the growing threat of famine at the G7 in Schloss Elmau Germany, Joly said.

She said Canada was in “listening mode” at the Commonwealth meetings, where leaders of smaller nations were able to speak without the dominating presence of the United States, Russia and China.

“What is clear to us is that Russia is weaponizing food and putting a toll on many countries around the world, and putting 50 million lives at risk,” Joly told reporters Friday in Rwanda.

Trudeau had attempted to meet with the chair of the African Union Commission, Moussa Faki Mahamat, for several days during the Commonwealth summit but the sit-down was repeatedly postponed and eventually cancelled.

Shortly after Trudeau arrived in Rwanda, the government announced Canada would dedicate a new ambassador to the African Union, which has suffered from the food shortages inflicted on the continent as a result of the warin Ukraine.

Both Ukraine President Volodymyr Zelenskyy and Putin have met with representatives of the African Union, with Russia blaming sanctions against its government for stopping the flow of grain.

At the conclusion of the Commonwealth summit, Trudeau announced $94 million in funding for various education initiatives and $120 million to support gender equality and women’s rights in Commonwealth countries.

Some of the other voices the prime minister has promised to centre at his international meetings, including the G7 summit,

belong to youth leaders who spoke at a Saturday-morning event focused on issues facing young people around the world.

Some of the delegates spoke about the devastating effects of climate change, particularly around remote island nations where infrastructure cannot withstand natural disasters and rebuilding efforts take years. The onslaught takes a toll on education and health services, one delegate told the forum.

This report by The Canadian Press was first published June 25, 2022.

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New federal task force to review Canada’s immigration, passport delays – Global News

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The federal government has created a special task force to help tackle the major delays with immigration applications and passport processing that have left Canadians frustrated.

In a statement announcing the new task force, Prime Minister Justin Trudeau said the federal government knows the delays are unacceptable, and will continue to do everything it can to improve the delivery of the services in an efficient and timely manner.

Read more:

Passport renewal wait times now online as Ottawa looks to address long lineups

Trudeau said the new task force will help guide the government to better meet the changing needs of Canadians, and continue to provide them with the high-quality services they need and deserve.

Ten cabinet members will spearhead the new committee, which will review how services are delivered, and identify gaps and areas for improvement.


Click to play video: 'New passport wait-time estimator shows system backlog'



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New passport wait-time estimator shows system backlog


New passport wait-time estimator shows system backlog – Jun 15, 2022

The committee will be expected to make recommendations outlining short- and longer-term solutions that would reduce wait times, clear out backlogs, and improve the overall quality of services provided.

Read more:

Canadian passport delays are frustrating travellers. What’s the fix?

In addition, the task force will monitor external issues, such as labour shortages around the world, which contribute to travel delays at home and abroad.

© 2022 The Canadian Press

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