Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
In a first for the Bank of Canada, it has released a summary of deliberations by its governing council regarding its policy decision to raise its key interest rate target by a quarter of a percentage point to 4.5 per cent in January.
The bank's governing council -- made up of governor Tiff Macklem, senior deputy governor Carolyn Rogers and three deputy governors -- met several times in the week before the rate decision was announced Jan. 25.
Here are five key takeaways from those discussions:
The Bank of Canada's governing council discussed two options: whether to leave its policy rate unchanged or to increase it by a quarter of a percentage point. The case for raising the rate was based on the fact that developments in the economy since the previous decision on Dec. 7 had been quite strong, as well as risks that inflation could get stuck somewhere above two per cent.
The meetings included discussion about whether the central bank should maintain similar language as its previous policy statement, or signal a pause in rate hikes. The Bank of Canada decided on new language that signalled a pause while it assessed the affect of its rate hikes on the economy and inflation.
The Bank of Canada says there was concern that the effects of tighter monetary policy could be larger than expected when it comes to the housing market. It said this could arise if the drop in home prices was to accelerate.
At the same time, the governing council recognized that continued strong immigration and household formation would provide underlying support for the housing market. Expectations of future monetary policy easing could also spur buyers to re-enter the market.
The governing council discussed that while several factors were combining to bring inflation down there was a risk of it becoming stuck materially above its two per cent target. It noted persistent supply chain challenges, services price inflation, wage growth and inflation expectations could all keep inflation above the target. It noted a rebound in oil prices could also push inflation back up again.
The governing council members expect the euro area will move into a mild recession, despite its surprising resilience. Risks related to the war in Ukraine continued to create uncertainty and higher interest rates were weighing on growth. The council also noted that oil prices could go higher because of China's reopening. It noted that if Chinese demand were to rebound by more than anticipated, oil prices could rise and put fresh pressure on inflation.
This report by The Canadian Press was first published Feb. 8, 2023.
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
The CFL suspended Toronto Argonauts quarterback Chad Kelly for at least nine regular-season games Tuesday following its investigation into a lawsuit filed by a former strength-and-conditioning coach against both the player and club.
An Ontario man says he paid more than $7,700 for a luxury villa he found on a popular travel website -- but the listing was fake.
Whether passionate about Poirot or hungry for Holmes, Winnipeg mystery obsessives have had a local haunt for over 30 years in which to search out their latest page-turners.
Eighty-two-year-old Susan Neufeldt and 90-year-old Ulrich Richter are no spring chickens, but their love blossomed over the weekend with their wedding at Pine View Manor just outside of Rosthern.
Alberta Ballet's double-bill production of 'Der Wolf' and 'The Rite of Spring' marks not only its final show of the season, but the last production for twin sisters Alexandra and Jennifer Gibson.
A mother goose and her goslings caused a bit of a traffic jam on a busy stretch of the Trans-Canada Highway near Vancouver Saturday.
A British Columbia mayor has been censured by city council – stripping him of his travel and lobbying budgets and removing him from city committees – for allegedly distributing a book that questions the history of Indigenous residential schools in Canada.
Three men in Quebec from the same family have fathered more than 600 children.
A group of SaskPower workers recently received special recognition at the legislature – for their efforts in repairing one of Saskatchewan's largest power plants after it was knocked offline for months following a serious flood last summer.
A police officer on Montreal's South Shore anonymously donated a kidney that wound up drastically changing the life of a schoolteacher living on dialysis.