Bank of Canada holds interest rate steady amidst trade uncertainties
Citing ongoing trade disputes and data indicating Canada could experience “potential growth” in the second quarter, Bank of Canada maintained its overnight rate at 1.75 percent.
“Trade conflicts between the United States and China, in particular, are curbing manufacturing activity and business investment and pushing down commodity prices,” says the central bank.
“Recent data show the Canadian economy is returning to potential growth. However, the outlook is clouded by persistent trade tensions. Taken together, the degree of accommodation being provided by the current policy interest rate remains appropriate.”
In June, Statistics Canada reported that Canada’s natural resource sector was keeping the economy in positive growth territory, which showed Gross Domestic Product increased by 0.3 percent in April.
While a slight decline from March’s half-percentage-point uptick and better than 2019’s dismal first-quarter GDP growth of 0.1 percent, the StatCan report noted dramatic increases in resource activity, particularly in oil and gas.
Today the Bank of Canada acknowledged that fair summertime weather and an active energy sector could bode well.
“Growth in the second quarter appears to be stronger than predicted due to some temporary factors, including…a surge in oil production,” it notes.
Bank of Canada “projects real GDP growth to average 1.3 percent in 2019 and about 2 percent in 2020 and 2021.”
Eight times a year Canada’s central bank sets a target for the overnight rate, the interest major financial institutions set to borrow and lend short-term funds among themselves.
These changes can influence other interest rates, such as consumer loans and mortgages as well as affect the exchange rate of the Canadian dollar.
Today the exchange rate is hovering around $1.24 Canadian-$1USD.
Liberal Transport Minister Marc Garneau is “very concerned” by the anti-pipeline protestors who have blocked the tracks between Ottawa, Toronto, and Montreal, according to CBC News.
These protests have crippled Canada’s infrastructure, particularly due to the fact that the protestors are blocking one of the busiest intersections of the countries transport network.
The protestors have blocked the tracks in Bellville, Ontario, which serves as the epicentre for all routes between Canada’s two largest cities and the capital of the nation. All passenger trains and freight trains have been blocked.
CN has chosen to shut down all train travel until the dispute is resolved, despite the fact that the train company received an injunction to remove the protestors from the tracks.
These protests have effectively shut down all passenger travel between these cities, and are having a significant impact on the transport of food and commercial goods. The effect on the economy if this blockade continues will be severe.
These protests have been ongoing since Thursday when demonstrators began to gather at the tracks. Since then, the protests have only gained more traction and attracted more demonstrators to the scene.
The demonstrators say that they are standing in solidarity with Wet’suwet’en chiefs. However, the northern B.C.First Nation officially supports the Coastal GasLink pipeline.
So far, Via Rail has had to cancel 157 trips in the Toronto-to-Montreal corridor: 24,500 passengers have been affected.
Most Ontarians are not for the government raising teachers’ salaries by 2 percent according to a poll formulated by The Star. Most people, however, do agree with the education unions on things like the number of students in a classroom and e-learning.
The opt-in poll was made by Campaign Research and included 1,536 people. It ran from Feb 6 to 9.
Nick Kouvalis, the principal strategist at Campaign Research said that most people “do not want to give the teachers a more than 1 percent raise,” and added, “but teachers should be encouraged that the public is still with them during these rotating strikes.”
The poll shows that 45 percent of people disagree with the teachers’ request of a 2 percent salary increase—opposing the 1 percent cap set in place by the government. Only 35 percent of people agree with teachers while 13 percent do not support either side and 8 percent are unsure.
Just 12 percent of people believe that teachers should not receive any pay increase while 32 percent support a 1 percent increase. Another 9 percent of the public believe that the teachers should receive an increase of more than 2 percent.
The public does not disagree with teachers on all issues though. While the government wants 2 of the 30 classes required by high school students to be taken online, teachers believe that the 30 classes should all be taken in the school classroom. The poll shows that 52 percent of the public agree with teachers on this issue while 28 percent disagree.
The public also agrees with teachers that the number of students per classroom should not be raised. The government wants to raise the amount of students per class to raise from 22.5 to 25. The poll finds that 52 percent of the public also agrees with teachers on this subject while 36 percent agree with Ontario’s government.
A cruise ship that has been stuck at sea after there were passengers discovered to have coronavirus is getting a little help from an adult website to entertain them while they’re quarantined: some skin flicks.
Approximately 7,300 passengers aboard the Diamond Princess and World Dream cruise have been stranded and docked Hong Kong and Japan as a direct result of the coronavirus epidemic.
251 Canadians are docked in Japan after it was announced on Sunday, that six more people tested positive for the virus. The cruise ship now has a total of 70 cases onboard with the remaining passengers stuck on board and quarantined with little to do for entertainment.
CamSoda, a Miami-based pornography company has offered quarantined passengers full complimentary access to their webcam services according to Fox Business reports.
Daryn Parker is CamSoda’s vice president and he elaborated on the decision in a statement to the press, “They are not only dealing with the fear of infection, which is terrifying, but boredom,” stated the release. “We like cruises just as much as the next guy, but without activities or human interaction, the boredom must be crippling.”
“In an effort to keep their minds off of the coronavirus and to help with the boredom, we’re offering passengers and crews the ability to have fun in a safe and controlled environment with camming.”
“Camming” is a more interactive approach to traditional pornography whereby individuals can perform in front of their webcam at home or in a studio for a live audience and the viewers pay for the experience through tips and site tokens. There is also the ability to chat in real-time with the sex worker.
CamSoda is asking that passengers and crew aboard the cruise to send them proof of travel documents via email to [email protected] according to the New York Post. CamSoda will then respond by sending the individual 1,000 free tokens which can be used to pay for the webcam live-stream performers.
Many towns and schools have been forced to evacuate after New South Wales sees heavy rainfall throughout the region. The rain has put out some of the wildfires that have been burning for months according to CTV News.
According to Australia’s Bureau of Meteorology, over 200 millimetres of rain came down on the region in just one day. Sydney saw more rainfall than the city has seen since 1990 at 391.6 millimetres over four days.
On Monday, the New South Wales Department of Education closed many schools due to flooding in the area.
Since Friday, more than 30 fires were put out by the heavy rainfall according to the New South Wales Fire Service. The Fire Service released a Tweet saying that the rain was the “most positive news we’ve had in some time.”
James Morris of the Fire Service noted that the Currowan fire was put out by the heavy rain on Saturday. That was a giant fire that had covered about 500,000 hectares in 74 days.
Morris also noted that the persisting fires will most likely be extinguished by the continuous rain.