Business

No more Bank of Canada interest rate cuts until the fall: report

Published

3 months ago

June 26, 2024

If you feel like your budget is still strained, you’re not alone. A major economic forecast says it might not get much better in the near term.

Deloitte’s Economic Outlook Summer 2024 predicts Canada will not see another interest rate cut this summer and B.C.’s economic growth will remain weak, for now.

“After three years of economic upheaval, the Canadian economy is beginning to settle down,” the report explained, adding that Canada is turning a corner, but hurdles remain amid signs of recovery.

When it comes to your personal finances, the report suggests the central bank will not make any more cuts to interest rates until the fall.

“The Bank of Canada will hold off until September for a second rate cut and then move again in December. Rate cuts are expected to continue throughout 2025 before the overnight rate settles at a neutral level of 2.75% by the end of next year.”

And with so many households struggling with indebtedness, Deloitte forecasts B.C.’s economy will see weak growth for the rest of 2024 as “highly indebted households pare back their spending in the face of rising debt servicing costs.”

Deloitte says there is “reluctance to make major purchases, housing affordability remains a challenge, and savings rates are well above normal.”

However, the report does offer some light at the end of the tunnel, predicting the provincial economy could rev up in 2025.

“As interest rates fall over the next 18 months, a boost in consumer spending and housing construction will help lift provincial GDP growth to 2.9% next year after growth of just 0.7% this year.”

But while lower interest rates should encourage households to spend and businesses to invest, the report cautions there are still risks to the economic outlook in the form of geopolitical tensions and the possibility that inflation and interest rates won’t fall as expected.

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Business

Suncor Energy pleads guilty to charges for 2019 injury on oil vessel off Newfoundland

Published

20 hours ago

September 27, 2024

Anne Joseph

ST. JOHN’S, N.L. – Suncor Energy has been fined $90,000 after pleading guilty to two charges stemming from a worker injury in 2019 aboard its production vessel in an oilfield off the coast of Newfoundland.

In a news release Thursday, the province’s offshore oil regular said the company must also give $20,000 to the College of the North Atlantic’s health and safety management program.

The Canada-Newfoundland and Labrador Offshore Petroleum Board says Calgary-based Suncor pleaded guilty on Sept. 5 for failing to ensure the safety of its employees and failing to ensure its employees wore a safety harness attached to a lifeline while inside a confined space.

The board says a worker fell 7.6 metres from a safety ladder while testing for hydrogen sulfide in a ballast tank on the floating production and storage vessel in the Terra Nova offshore oilfield.

An agreed statement of facts says two emergency response workers then went into the tank to tend to the fallen man, and they were not wearing gas masks.

Suncor Energy is the majority owner of the Terra Nova oilfield, and it reported net earnings of $1.57 billion in the second quarter of this year.

This report by The Canadian Press was first published Sept. 17, 2024.

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Business

TD Bank announces new co-heads of U.S. commercial banking business

Published

2 days ago

September 26, 2024

Anne Joseph

Toronto-Dominion Bank has named new co-heads of its U.S. commercial banking business.

TD says Andy Bregenzer and Jill Gateman will jointly lead the operations.

The bank says the appointments follow the announcement earlier this year of Chris Giamo’s retirement.

Bregenzer will focus on leading all aspects of the regional commercial bank, including small business.

Gateman will lead TD’s national commercial banking effort in the U.S., including middle market, sponsor-backed finance and TD’s other specialty lending lines of business.

TD, which is working to resolve investigations into failures in its anti-money laundering program in the U.S., announced last week that chief executive Bharat Masrani would retire next year and be replaced by Raymond Chun.

This report by The Canadian Press was first published Sept. 26, 2024.

Companies in this story: (TSX:TD)

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Payments tech company Lightspeed Commerce conducting strategic review of business

Published

2 days ago

September 26, 2024

Anne Joseph

MONTREAL – Lightspeed Commerce Inc. says it is conducting a review of its business and operations including talks relating to a range of potential strategic alternatives.

The Montreal-based payments technology company made the comments after reports concerning a potential transaction involving the company.

Lightspeed says it periodically undertakes a review of its business and operations with a view of realizing its full potential.

A strategic review is often seen by investors as a prelude to a sale by a company.

Lightspeed says its board of directors is committed to acting in the best interests of the company and its stakeholders.

Company founder Dax Dasilva returned to the role of chief executive officer earlier this year and has been working to return the company to profitability.

This report by The Canadian Press was first published Sept. 26, 2024.

Companies in this story: (TSX:LSPD)

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