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Interest rate: Bank of Canada holds key rate – CTV News

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OTTAWA –

The Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent, but warning it won’t stay there for much longer.

The trendsetting rate has been at its rock-bottom level since March 2020 during the first wave of the COVID-19 pandemic as the economy went into a downturn and three million jobs were lost.

The central bank said Wednesday the rebound since then and especially over the last few months has been stronger than it anticipated.

In a statement, the bank’s senior decision-makers said the economy is running at capacity, including a labour market that is by most standards back at pre-pandemic levels.

The rebound is why it now says it will no longer promise to keep its key policy rate at 0.25 per cent, adding that rates will need to rise to bring inflation back to the central bank’s two per cent target.

“Interest rates will need to increase to control inflation. Canadians should expect a rising path for interest rates,” Bank of Canada governor Tiff Macklem said in a statement.

He also pointed to the rapid spread of the Omicron variant as an economic “wild card” at home and abroad to explain why the bank held off on hiking rates Wednesday.

“Our approach to monetary policy throughout the pandemic has been deliberate, and we were mindful that the rapid spread of Omicron will dampen spending in the first quarter. So we decided to keep our policy rate unchanged today, remove our commitment to hold it at its floor, and signal that rates can be expected to increase going forward,” Macklem said.

CIBC chief economist Avery Shenfeld said he expects the Bank of Canada to raise rates in March if the country gets better news about the Omicron variant.

The central bank didn’t outline the timing or pace of increases in its statement, but the decision to hold off on a first hike will be controversial in financial markets at a time when headline inflation is at a 30-year high, says Stephen Tapp, chief economist at the Canadian Chamber of Commerce.

The Bank of Canada warned in its updated economic outlook that inflation rates are likely to creep above five per cent for the first quarter before easing by the end of the year.

The pace of price growth is then expected to ease by the end of 2022, but inflation for the entire year is forecasted to clock in at 4.2 per cent, up from the 3.4 per cent the bank forecasted in October.

Surveys from the Bank of Canada suggest Canadians are now expecting inflation rates to remain higher for longer.

The longer inflation rates stay high, the more likely Canadians will believe they will stay elevated over the long-term, which the bank worries could lead to runaway price growth.

In the rate announcement, the bank said it will use its policy tools to ensure “near-term inflation expectations do not become embedded in ongoing inflation.”

The central bank estimates the economy grew by 4.6 per cent in 2021, down half a percentage point from its previous forecast in October, and now projects growth in real gross domestic product in 2022 at four per cent, down from 4.3 per cent.

The Bank of Canada said part of the downgrade this year is due to the impact of Omicron, hints from governments that spending is easing earlier than expected, and supply chain issues that will have “larger and more broad-based negative implications on economic activity” this year.

The bank said the possibility of more variants in the future renewing restrictions here and abroad also cloud the outlook.

This report by The Canadian Press was first published Jan. 26, 2022.

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Supreme Court of Canada to rule on sentencing for Quebec City mosque shooter

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OTTAWA — The Supreme Court of Canada is slated to rule Friday on the sentencing of a man who went on a deadly shooting spree at a Quebec City mosque.

The decision in Alexandre Bissonnette’s case will determine the constitutionality of a key provision on parole eligibility in multiple-murder convictions.

As a result, it will also reverberate far beyond the case before the court.

In March 2021, a judge found Alek Minassian guilty of 10 counts of first-degree murder, three years after he smashed into people with a van on a busy Toronto sidewalk. The judge decided to delay sentencing until after the Supreme Court decision.

At issue is the tension between society’s denunciation of such horrific crimes and the notion of rehabilitation as a fundamental value in sentencing.

Bissonnette pleaded guilty to six charges of first-degree murder and six of attempted murder in the January 2017 mosque assault that took place just after evening prayers.

In 2019, Bissonnette successfully challenged a 2011 law that allowed a court, in the event of multiple murders, to impose a life sentence and parole ineligibility periods of 25 years to be served consecutively for each murder.

A judge found the provision unconstitutional but saw no need to declare it invalid and instead read in new wording that would allow a court to impose consecutive periods of less than 25 years.

Ultimately, the judge ruled Bissonnette must wait 40 years before applying for parole.

Quebec’s Court of Appeal agreed that the sentencing provision violated Charter of Rights guarantees of life, liberty and security of the person, as well as freedom from cruel or unusual punishment.

“Parliament’s response to the problem identified is so extreme as to be disproportionate to any legitimate government interest,” the Appeal Court said.

“The judge was therefore right to conclude that the scope of the provision is clearly broader than necessary to achieve the objectives of denunciation and protection of the public.”

The Appeal Court, however, said the judge erred in making the ineligibility period 40 years.

It declared the sentencing provision constitutionally invalid and said the court must revert to the law as it stood before 2011, meaning the parole ineligibility periods are to be served concurrently — resulting in a total waiting period of 25 years in Bissonnette’s case.

The Court of Appeal noted there is no guarantee the Parole Board would grant Bissonnette parole in 25 years.

“This will depend on the circumstances at the time, including the appellant’s level of dangerousness, his potential for rehabilitation and the manner in which his personality has evolved,” the court said.

“Furthermore, as with any parole, if it is granted, it will include the necessary conditions for adequately ensuring the security of the public, failing which it will not be granted.”

This report by The Canadian Press was first published May 26, 2022.

 

Jim Bronskill, The Canadian Press

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Minke whale carcass found northeast of Montreal is likely one seen near city: expert

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MONTREAL — A dead whale found in the St. Lawrence River northeast of Montreal is probably one of two minke whales seen near the city earlier this month, a marine researcher said Thursday.

Robert Michaud, president of a Quebec marine mammal research group, said experts have yet to examine the carcass found in Contrecoeur, Que., about 50 kilometres downstream from Montreal.

Michaud said a necropsy could be performed depending on that assessment, adding that the task would fall to veterinary medicine students at Université de Montréal.

Two minke whales were spotted this month near Montreal, and there were concerns for their well-being, as they were about 450 kilometres upstream of their usual range.

Minke whales are common in Quebec but don’t generally venture west of the saltwater St. Lawrence estuary around Tadoussac, Que.

Ronald Gosselin, one of the fishermen behind the discovery on Thursday morning, said he was in his boat fishing when he saw a bizarre shape in the water.

“In my life, I’ve seen maybe two or three whales, including one that beached in Contrecoeur,” Gosselin said.

A local fishing guide, Gosselin, 66, said whales are not a common sight in the area. He spotted the mammal floating in the St. Lawrence River near Île Saint-Ours.

The two Montreal whales had not been seen since mid-May.

It’s unclear why whales occasionally venture into freshwater habitats, but Michaud has said there isn’t much that can be done to help them besides hoping they turn around and head home.

This report by The Canadian Press was first published May 26, 2022.

 

The Canadian Press

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Murray Sinclair honoured with Order of Canada at Rideau Hall ceremony

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OTTAWA — Murray Sinclair received the Order of Canada Thursday for dedicating his life to championing Indigenous Peoples’ rights and freedoms.

Sinclair held his wife’s hand as the award was announced in Rideau Hall, and was met with a standing ovation as he rose to receive it.

Gov. Gen. Mary Simon presented Sinclair with the award at the ceremony, which was held several months after it was announced he would receive the honour.

By accepting the award, Sinclair wanted to show the country that working on Indigenous issues calls for national attention and participation, he said in an interview.

Sinclair, 71, said at his age he has begun to reflect on his life, and he realizes that he’s had both the joy and sadness that comes with participating in this work.

Receiving the award recognizes the importance of that work, and can act as inspiration for younger people, Sinclair said.

“When I speak to young people, I always tell them that we all have a responsibility to do the best that we can and to be the best that we can be,” he said.

Sinclair led the Truth and Reconciliation Commission, which investigated the experiences of Indigenous children sent to residential schools.

Sinclair said it was a particular honour to receive the award from Simon, the first Indigenous Governor General, as she is a good friend and was an honorary witness to the commission.

“As an Indigenous person, we had a unique relationship. And I think we brought it to what happened here today,” he said.

The former senator is a highly respected voice on matters of reconciliation between Indigenous and non-Indigenous people.

The Order of Canada is one of the country’s highest distinctions, for those who have made exceptional contributions to Canadian society.

Sinclair also received the Meritorious Service Cross for his role in overseeing the Truth and Reconciliation commission and producing the final report.

This report by The Canadian Press was first published May 26, 2022.

This story was produced with the financial assistance of the Meta and Canadian Press News Fellowship.

 

Erika Ibrahim, The Canadian Press

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