Couple randomly attacked, 1 stabbed, by group of teens in Toronto, police say
A man has been transported to hospital after police say he was stabbed in a random attack carried out by a group of teens in Toronto on Friday night.
The Bank of Canada's strategy of rapidly increasing its key interest rate in an effort to tackle skyrocketing inflation will likely trigger a recession, says a new study released Tuesday from the Canadian Centre for Policy Alternatives (CCPA).
The study showed that in the last 60 years the central bank has in three cases managed a 5.7 per cent reduction in the inflation rate by quickly raising interest rate, and each case was followed by a recession.
The research institute said if the central bank aims to bring inflation down from 7.7 per cent to its two per cent target by quickly raising rates, it could cause significant "collateral damage," including 850,000 job losses, and is calling for a new policy on inflation targeting to reduce that risk.
Jennifer Lee, senior economist at BMO Capital Markets, who is expecting a 0.75 percentage point interest rate increase from the Bank of Canada this month, said the swift and aggressive hikes will "for sure" cause a significant slowdown in economic growth.
"Whether or not it's going to be an official recession remains to be seen, but clearly a significant slowdown," she said.
She also said there are few alternatives that the central bank has at its disposal right now to tackle inflation.
"Rate hikes are needed right now -- larger ones -- to slay this inflation monster sooner rather than later," she said.
David Doyle, head of economics at Macquarie Group, who is also expecting a 0.75 percentage point hike, is forecasting a recession in 2023 in both Canada and the United States.
"We expect the contraction to be greater in Canada due to its more severe structural imbalances, such as housing investment and consumer debt levels," he said.
Canada is already experiencing a slowdown in economic growth and even seeing layoffs in some sectors, like technology.
Statistics Canada said last week it expects to report a GDP contraction of 0.2 per cent for the month of May amid weakness in the resource, manufacturing and construction sectors.
In its study, the CCPA said the Bank of Canada could potentially reduce the risk of sending the economy into a recession by adjusting its target inflation rate to four per cent. The study highlighted how the bank has successfully avoided a recession when it has aimed for smaller reductions in inflation, allowing the bank to bring in smaller rate increases over a longer period.
However, Doyle said raising the inflation target to four per cent would be a "bad idea."
"It would damage the Bank of Canada's credibility and independence and create more uncertainty," he said. "It would also increase the risk of a severe downside scenario, where there is a de-anchoring of consumer and business inflation expectations."
The CCPA study comes a day after the Bank of Canada released two quarterly surveys which revealed consumers and businesses expect inflation to stay high for several years, further increasing the odds of a 0.75 percentage point interest rate hike this month.
While speaking to reporters at an event in Brampton, Ont. on Tuesday, Deputy Prime Minister Chrystia Freeland was asked about the CCPA study and said the Bank of Canada is well-equipped to handle the inflation problem.
"It has the tools and it has the expertise to (bring down inflation). And I think we should all have confidence that the Bank of Canada will do its job," she said.
As for how long it might take to even reach the central bank's two per cent inflation target, BMO's Lee said we'll likely see three per cent inflation by end of the 2023, with two per cent more a 2024 or 2025 possibility.
This report by The Canadian Press was first published July 5, 2022.
A man has been transported to hospital after police say he was stabbed in a random attack carried out by a group of teens in Toronto on Friday night.
Ron Ellis, who played over 1,000 games with the Toronto Maple Leafs and was a member of Canada's team at the 1972 Summit Series, has died at age 79.
The wildfire that prompted the evacuation of more than 3,000 people near Fort Nelson, B.C., was caused by a tree falling on wires, according to the municipality's mayor.
The final of the 68th Eurovision Song Contest kicked off Saturday in the Swedish city of Malmo after days of protests and offstage drama that have tipped the feelgood musical celebration into a chaotic pressure cooker overshadowed by the war in Gaza.
From London, to Grand Bend, Collingwood and Guelph, here are some highlights of Friday night and Saturday morning's northern lights display.
The rolling hills leading to the hamlet of Rosebud are dotted with sprawling farms and cattle pastures -- and a sign sporting a simple message: No Race Track.
Irresponsibly using a credit card can land you in financial trouble, but personal finance columnist Christopher Liew says when used properly, it can be a powerful wealth-building tool that can help grow your credit profile and create new opportunities.
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
A growing number of civilians and police officers are demanding the dismissal and arrest of Haiti's police chief as heavily armed gangs launched a new attack in the capital of Port-au-Prince, seizing control of yet another police station early Saturday.
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
A Listowel, Ont. man, drafted by the Hamilton Tigercats last week, is also getting looks from the NFL, despite only playing 27 games of football in his life.
The threat of zebra mussels has prompted the federal government to temporarily ban watercraft from a Manitoba lake popular with tourists.
A small Ajax dessert shop that recently received a glowing review from celebrity food critic Keith Lee is being forced to move after a zoning complaint was made following the social media influencer’s visit last month.
The Canada Science and Technology Museum is inviting visitors to explore their poop. A new exhibition opens at the Ottawa museum on Friday called, 'Oh Crap! Rethinking human waste.'
The Regina Police Service says it is the first in Saskatchewan and possibly Canada to implement new technology in its detention facility that will offer real-time monitoring of detainees’ vital health metrics.
Just as she had feared, a restaurant owner from eastern Quebec who visited Montreal had her SUV stolen, but says it was all thanks to the kindness of strangers on the internet — not the police — that she got it back.
The stakes have been set for a bet between Vancouver and Edmonton's mayors on who will win Round 2 of the Stanley Cup playoffs.
A grieving mother is hosting a helmet drive in the hopes of protecting children on Manitoba First Nations from a similar tragedy that killed her daughter.