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Politics not to blame for inflation: former Bank of Canada governor – Global News

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With inflation becoming a regularly politicized topic as debates over the cost of breakfasts rule the day, the former Bank of Canada (BoC) governor says there can’t be anyone on the political spectrum who deserves blame.

Speaking to Global News’ Abigail Bimman on The West Block regarding the upcoming fiscal update, Stephen Poloz, now a special adviser at Osler and former governor of the BoC, said that Canada’s ability to navigate the pandemic with results that weren’t far more drastic economically should be commended.

“Aren’t we lucky that the policies worked well to prevent the second Great Depression, which is what many economists were worried about when we first encountered the COVID-19 shock,” Poloz said.

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Liberals under pressure to balance budget and policy asks in fiscal update

However, he added that while Canada chartered a path towards recovery amid concerns of deflation with debt that could’ve potentially caused a depression, now is time to continue focusing on growth.

“People want to be reassured that the fiscal plan is a sustainable one,” said Poloz. Given the rising costs Canadians are facing, they’re going to want to see a plan that will ease tensions, he added.






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Bank of Canada says inflation will near 5% by end of year, staying higher for longer than forecast


Bank of Canada says inflation will near 5% by end of year, staying higher for longer than forecast – Oct 27, 2021

Finance Minister Chrystia Freeland’s fiscal update is set to be similar to those that were released following the 2015 and 2019 elections, according to Reuters. The update is expected to touch on COVID-19 support for businesses and continue to chart a path for recovery during the pandemic.

“[A plan] that perhaps begins the [economic] return to a place where we’ll know we’ll have some room to maneuver should another big shock occur,” Poloz said.

Read more:

Bank of Canada holds key rate, warns high inflation to persist into 2022

Poloz mentioned that he, along with other Canadians, will be looking to see where the deficit in the debt plan fits in, if there will be new taxes that could hamper economic growth and what will happen to internal trade barriers between provinces. He added that one temporary increase he would look to that would not slow growth, but rather support the Canadian economy, is an increase in sales tax.

What could slow growth, he said, was if there are more lockdowns due to further complications with the COVID-19 pandemic as new variants emerge.

“My sense is that economic growth, once we’re past the bust and recovery of the COVID shock, the trend rate of growth of the economy is actually going to be fairly modest,” he said.

Inflation — a slow-moving process

According to the BoC, inflation, as measured by the consumer price index, has been higher than the Bank’s 2.0 per cent target. The BoC said that supply constraints have affected the price of goods with inflation in 2021 hitting 4.4 per cent. The steep rise in inflation in one year is unprecedented given the data from before the pandemic, where during a span of 20 years, it only averaged 1.4 per cent.

Poloz said that inflation is often a slow-moving process over several years, but the sharp rise in costs is an indicator that it is likely coming from “temporary factors.”

According to the Bank of Canada website, the steep inflation increase has been due to “strong demand combined with disruptions in supply” leading to “higher costs for businesses and higher prices for consumers.”






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Consumer Matters: Big increase predicted for food prices in 2022


Consumer Matters: Big increase predicted for food prices in 2022

On Dec. 9, the BoC’s deputy governor Toni Gravelle in a speech said the central bank remains “resolute in its commitment to keep inflation under control” in Canada.

With Canadians paying more at the grocery store now than a year ago, Poloz mentioned that any measures used to curb inflation need to be well thought out, as we don’t know the extent of what is happening.

Read more:

Bank of Canada sees no clear end to supply chain issues

“We’re in the zone now where fine judgments have to take place,” he said. “We won’t know really what inflation is for about another six or nine months.”

Time for key interest rate to rise

Since the pandemic began in March 2020, the BoC has kept the key interest rate at 0.25 per cent, and announced recently they will maintain that price. However, they have signalled potential increases in 2022.

Poloz said that with the Canadian economy trending in the right direction and “mostly back to normal,” raising the key benchmark rate is something that should be considered, albeit not right away.

“It is time for everything to normalize — prices, interest rates, all those things,” said Poloz. “It’s no longer necessary to have really, really low interest rates.”

Poloz added that the data that comes out regarding inflation and the continued COVD-19 economic recovery should serve as the driving points to where the key benchmark rate will end up.

© 2021 Global News, a division of Corus Entertainment Inc.

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‘Disgraceful:’ N.S. Tory leader slams school’s request that military remove uniform

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HALIFAX – Nova Scotia Premier Tim Houston says it’s “disgraceful and demeaning” that a Halifax-area school would request that service members not wear military uniforms to its Remembrance Day ceremony.

Houston’s comments were part of a chorus of criticism levelled at the school — Sackville Heights Elementary — whose administration decided to back away from the plan after the outcry.

A November newsletter from the school in Middle Sackville, N.S., invited Armed Forces members to attend its ceremony but asked that all attendees arrive in civilian attire to “maintain a welcoming environment for all.”

Houston, who is currently running for re-election, accused the school’s leaders of “disgracing themselves while demeaning the people who protect our country” in a post on the social media platform X Thursday night.

“If the people behind this decision had a shred of the courage that our veterans have, this cowardly and insulting idea would have been rejected immediately,” Houston’s post read. There were also several calls for resignations within the school’s administration attached to Houston’s post.

In an email to families Thursday night, the school’s principal, Rachael Webster, apologized and welcomed military family members to attend “in the attire that makes them most comfortable.”

“I recognize this request has caused harm and I am deeply sorry,” Webster’s email read, adding later that the school has the “utmost respect for what the uniform represents.”

Webster said the initial request was out of concern for some students who come from countries experiencing conflict and who she said expressed discomfort with images of war, including military uniforms.

Her email said any students who have concerns about seeing Armed Forces members in uniform can be accommodated in a way that makes them feel safe, but she provided no further details in the message.

Webster did not immediately respond to a request for comment.

At a news conference Friday, Houston said he’s glad the initial request was reversed but said he is still concerned.

“I can’t actually fathom how a decision like that was made,” Houston told reporters Friday, adding that he grew up moving between military bases around the country while his father was in the Armed Forces.

“My story of growing up in a military family is not unique in our province. The tradition of service is something so many of us share,” he said.

“Saying ‘lest we forget’ is a solemn promise to the fallen. It’s our commitment to those that continue to serve and our commitment that we will pass on our respects to the next generation.”

Liberal Leader Zach Churchill also said he’s happy with the school’s decision to allow uniformed Armed Forces members to attend the ceremony, but he said he didn’t think it was fair to question the intentions of those behind the original decision.

“We need to have them (uniforms) on display at Remembrance Day,” he said. “Not only are we celebrating (veterans) … we’re also commemorating our dead who gave the greatest sacrifice for our country and for the freedoms we have.”

NDP Leader Claudia Chender said that while Remembrance Day is an important occasion to honour veterans and current service members’ sacrifices, she said she hopes Houston wasn’t taking advantage of the decision to “play politics with this solemn occasion for his own political gain.”

“I hope Tim Houston reached out to the principal of the school before making a public statement,” she said in a statement.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Saskatchewan NDP’s Beck holds first caucus meeting after election, outlines plans

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REGINA – Saskatchewan Opposition NDP Leader Carla Beck says she wants to prove to residents her party is the government in waiting as she heads into the incoming legislative session.

Beck held her first caucus meeting with 27 members, nearly double than what she had before the Oct. 28 election but short of the 31 required to form a majority in the 61-seat legislature.

She says her priorities will be health care and cost-of-living issues.

Beck says people need affordability help right now and will press Premier Scott Moe’s Saskatchewan Party government to cut the gas tax and the provincial sales tax on children’s clothing and some grocery items.

Beck’s NDP is Saskatchewan’s largest Opposition in nearly two decades after sweeping Regina and winning all but one seat in Saskatoon.

The Saskatchewan Party won 34 seats, retaining its hold on all of the rural ridings and smaller cities.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Nova Scotia election: Liberals say province’s immigration levels are too high

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HALIFAX – Nova Scotia‘s growing population was the subject of debate on Day 12 of the provincial election campaign, with Liberal Leader Zach Churchill arguing immigration levels must be reduced until the province can provide enough housing and health-care services.

Churchill said Thursday a plan by the incumbent Progressive Conservatives to double the province’s population to two million people by the year 2060 is unrealistic and unsustainable.

“That’s a big leap and it’s making life harder for people who live here, (including ) young people looking for a place to live and seniors looking to downsize,” he told a news conference at his campaign headquarters in Halifax.

Anticipating that his call for less immigration might provoke protests from the immigrant community, Churchill was careful to note that he is among the third generation of a family that moved to Nova Scotia from Lebanon.

“I know the value of immigration, the importance of it to our province. We have been built on the backs of an immigrant population. But we just need to do it in a responsible way.”

The Liberal leader said Tim Houston’s Tories, who are seeking a second term in office, have made a mistake by exceeding immigration targets set by the province’s Department of Labour and Immigration. Churchill said a Liberal government would abide by the department’s targets.

In the most recent fiscal year, the government welcomed almost 12,000 immigrants through its nominee program, exceeding the department’s limit by more than 4,000, he said. The numbers aren’t huge, but the increase won’t help ease the province’s shortages in housing and doctors, and the increased strain on its infrastructure, including roads, schools and cellphone networks, Churchill said.

“(The Immigration Department) has done the hard work on this,” he said. “They know where the labour gaps are, and they know what growth is sustainable.”

In response, Houston said his commitment to double the population was a “stretch goal.” And he said the province had long struggled with a declining population before that trend was recently reversed.

“The only immigration that can come into this province at this time is if they are a skilled trade worker or a health-care worker,” Houston said. “The population has grown by two per cent a year, actually quite similar growth to what we experienced under the Liberal government before us.”

Still, Houston said he’s heard Nova Scotians’ concerns about population growth, and he then pivoted to criticize Prime Minister Justin Trudeau for trying to send 6,000 asylum seekers to Nova Scotia, an assertion the federal government has denied.

Churchill said Houston’s claim about asylum seekers was shameful.

“It’s smoke and mirrors,” the Liberal leader said. “He is overshooting his own department’s numbers for sustainable population growth and yet he is trying to blame this on asylum seekers … who aren’t even here.”

In September, federal Immigration Minister Marc Miller said there is no plan to send any asylum seekers to the province without compensation or the consent of the premier. He said the 6,000 number was an “aspirational” figure based on models that reflect each province’s population.

In Halifax, NDP Leader Claudia Chender said it’s clear Nova Scotia needs more doctors, nurses and skilled trades people.

“Immigration has been and always will be a part of the Nova Scotia story, but we need to build as we grow,” Chender said. “This is why we have been pushing the Houston government to build more affordable housing.”

Chender was in a Halifax cafe on Thursday when she promised her party would remove the province’s portion of the harmonized sales tax from all grocery, cellphone and internet bills if elected to govern on Nov. 26. The tax would also be removed from the sale and installation of heat pumps.

“Our focus is on helping people to afford their lives,” Chender told reporters. “We know there are certain things that you can’t live without: food, internet and a phone …. So we know this will have the single biggest impact.”

The party estimates the measure would save the average Nova Scotia family about $1,300 a year.

“That’s a lot more than a one or two per cent HST cut,” Chender said, referring to the Progressive Conservative pledge to reduce the tax by one percentage point and the Liberal promise to trim it by two percentage points.

Elsewhere on the campaign trail, Houston announced that a Progressive Conservative government would make parking free at all Nova Scotia hospitals and health-care centres. The promise was also made by the Liberals in their election platform released Monday.

“Free parking may not seem like a big deal to some, but … the parking, especially for people working at the facilities, can add up to hundreds of dollars,” the premier told a news conference at his campaign headquarters in Halifax.

This report by The Canadian Press was first published Nov. 7, 2024.

— With files from Keith Doucette in Halifax

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