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Rosenberg sees Bank of Canada slashing interest rate to avert household debt crisis

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Historic levels of household debt are straining the finances of Canadians to the point that it will be impossible for the Bank of Canada to keep interest rates at current levels for long, according to prominent economist David Rosenberg.

“People think that it’s the government debt crisis, (but) no, there is a crisis on Canadian household balance sheets,” Rosenberg said Nov. 28 on BNN Bloomberg.

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The president of Rosenberg Research said household financial strain had hit a critical level, estimating the household debt-to-income ratio to be over 170 per cent. Such high ratios, according to Rosenberg, are unsustainable given the Bank of Canada’s current overnight rate of five per cent.

In May, when the central bank’s rate was 4.5 per cent, the Canada Mortgage and Housing Corp. said Canada’s elevated household debt levels, the highest in the G7, posed a considerable risk to the economy, making it particularly susceptible to a global economic downturn.

Since then, there have been two additional interest rate hikes and Rosenberg contends the current rate is unsustainable for the majority of Canadians. He said the central bank would need to lower rates significantly to avert a severe recession, and sees the Bank of Canada cutting rates by at least 200 to 300 basis points to provide economic relief. The Bank of Canada’s next interest rate announcement is scheduled for Dec. 6.

Rosenberg said he believes Canada is already in a recession, evidenced by flat or negative real gross domestic product (GDP) readings in recent quarters. He believes that population growth has masked the recession and led the Bank of Canada to focus excessively on inflation.

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Quebec public services are becoming ‘dehumanized’ due to rise in demand: ombudsperson

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MONTREAL – Quebec’s ombudsperson is warning that public services are becoming “dehumanized” in the province amid a rise in demand for them.

Marc-André Dowd released his annual report today, which highlights several examples of people receiving inadequate care across the health network in the 12 months leading to March 31.

One dying man who lived alone was denied help cleaning his cat’s litter box by his local health clinic, a service Dowd says should have been given for “humanitarian reasons.”

Dowd also describes staff at a long-term care home feeding residents “mechanically” and talking among each other — despite health ministry guidelines directing staff to maintain eye contact with residents.

The ombudsperson says his office received a record number of problems to investigate across the province’s public services — 24,867 compared with 22,053 last year.

He says his office investigated 13,358 cases between April 2023 and March of this year.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.



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French President Emmanuel Macron to visit Ottawa, Montreal next week

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OTTAWA – French President Emmanuel Macron will visit Canada next week after a planned trip in July was cancelled amid political turmoil in France.

Prime Minister Justin Trudeau announced in a statement today that Macron will be in Canada Wednesday and Thursday after the leaders attend the United Nations General Assembly in New York City.

Trudeau will welcome Macron in Ottawa on Wednesday, where they are expected to discuss collaboration on geopolitical issues including their ongoing support for Ukraine.

They are also expected to discuss ways to strengthen the response to emerging threats, such as disinformation.

In Montreal, Trudeau intends to show off the city’s artificial intelligence sector, while both countries reaffirm their commitment to work with counterparts on responsible use of AI.

The leaders will also discuss promoting the French language ahead of the Francophonie summit being held in France next month.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.



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Health Canada approves updated Novavax COVID-19 vaccine

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Health Canada has authorized Novavax’s updated COVID-19 vaccine that protects against currently circulating variants of the virus.

The protein-based vaccine, called Nuvaxovid, has been reformulated to target the JN.1 subvariant of Omicron.

It will replace the previous version of the vaccine, which targeted the XBB.1.5 subvariant of Omicron.

Health Canada recently asked provinces and territories to get rid of their older COVID-19 vaccines to ensure the most current vaccine will be used during this fall’s respiratory virus season.

Earlier this week, Health Canada approved Moderna’s updated mRNA COVID vaccine.

It is still reviewing Pfizer’s updated mRNA vaccine, with a decision expected soon.

This report by The Canadian Press was first published Sept. 19, 2024.

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

Note to readers: This is a corrected story. A previous version erroneously described the Novavax vaccine as an mRNA shot.

The Canadian Press. All rights reserved.



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