The Bank of Canada raised its overnight rate by 25 basis points to 4.75 per cent on Wednesday, its first increase since pausing hikes in January. The central bank’s key interest rate has not been this high since April 2001.
Several factors led to the bank’s decision to raise the key interest rate, including economic growth in Canada. Gross Domestic Product exceeded expectations in the first quarter of this year, growing by 3.1 per cent.
The central bank says demand in the economy has rebounded, with surprisingly strong consumer spending. Housing market activity has picked up again and the Canadian labour market remains tight.
“Overall, excess demand in the economy looks to be more persistent than anticipated,” reads the release.
In April, inflation increased for the first time in 10 months to 4.4 per cent. The bank still expects inflation to decline to 3 per cent by this summer, but concerns remain that inflation could get stuck above the 2 per cent target.
“Goods price inflation increased, despite lower energy costs,” reads the statement. “Services price inflation remained elevated, reflecting strong demand and a tight labour market.”
Finance Minister Chrystia Freeland says Canada has made meaningful progress, with inflation dropping from its peak of 8.1 per cent last year to 4.4 per cent in April.
“The Bank of Canada has predicted that inflation will fall to 3 per cent this summer,” Freeland said to reporters in Ottawa on Wednesday. “We are very close to the end of this difficult time and to a return to low stable inflation and strong steady growth.”
The federal government has faced criticism from the opposition over its fiscal spending and Conservative Leader Pierre Poilievre is sounding the alarm on Canada’s household debt problem.
“This is on the verge of becoming a crisis and that is an overused term,” Poilievre said during a caucus speech to his party in Ottawa. “As these hundreds of billions of dollars of debt collide with massive increases in interest rates there will be a severe default crisis.”
Global inflation also remains high. Despite this, the economies of the United States and China are beginning to slow down and Europe’s economy has stalled.
The Organization for Economic Co-operation and Development (OECD) projects the global economy to grow moderately by 2.7 per cent in 2023 and global inflation to decline to 6.6 per cent this year, according to its economic outlook.
“Core inflation is proving sticky, on the back of strong service increases and higher profits in some sectors,” reads the OECD Economic Outlook. “Monetary Policy should remain restrictive until there are clear signs that underlying inflationary pressures are durably reduced.”
Going forward, the Bank of Canada’s Governing Council will focus mainly on inflation expectations, wage growth, corporate pricing and excess demand to ensure these factors are in line with the inflation target.
The next scheduled rate announcement is expected on July 12, 2023.
Donald Trump has said he wouldn’t be a dictator — 'except for Day 1.' According to his own statements, he's got a lot to do on that first day in the White House.
King Charles III led the nation Sunday in a two-minute silence in remembrance of fallen service personnel in central London as the Princess of Wales looked on, a further sign the royal family is slowly returning to normal at the end of a year in which two of the most popular royals were sidelined by cancer.
Murray Sinclair’s family members say the late justice and senator has been laid to rest according to his wishes.
As the possibility of mass deportations looms following Donald Trump's re-election on Tuesday, border towns like the City of Cornwall are preparing for a potential influx of asylum seekers.
On Friday, the Sarnia Police Service (SPS) received a report of an alleged abduction in the area of Kathleen Avenue and Walnut Avenue.
Canada's ambassador to the United States — and co-lead of the federal government's Team Canada war room — says U.S. president-elect Donald Trump has a different understanding of the bilateral relationship than he did during his first term in the White House.
Researchers say taking a peek inside a person's brain is as difficult as understanding the universe or discovering the ocean in its entirety.
Chu shared on his Instagram Stories that he and his wife Kristin Hodge welcomed their fifth child on Saturday, writing that he “can’t believe this happened while the movie is premiering.”
A 6.8 magnitude earthquake shook eastern Cuba on Sunday, after weeks of hurricanes and blackouts that have left many on the island reeling.
Police in Newfoundland say a man was electrocuted Saturday by a downed power wire about 10 kilometres north of St. John's, N.L.
Nova Scotia's New Democratic Party says a candidate criticized by the Centre for Israel and Jewish Affairs for "troubling" and "damaging" social media posts is no longer running for the party in the Nov. 26 general election.
On Friday, the Sarnia Police Service (SPS) received a report of an alleged abduction in the area of Kathleen Avenue and Walnut Avenue.
Winnipeg firefighters rescued and reunited a cat with its owners Saturday after a house fire in the city’s Burrows neighbourhood.
Dozens of people gathered in Surrey's Holland Park on Saturday to show their support for the family of missing 18-year-old Joseph Maku.
A woman is dead after a driver crashed a truck through a Boston Pizza in Fort McMurray late Saturday morning.
Donald Trump has said he wouldn’t be a dictator — 'except for Day 1.' According to his own statements, he's got a lot to do on that first day in the White House.
Thousands of Spaniards marched in the eastern city of Valencia on Saturday to demand the resignation of the regional president in charge of the emergency response to last week's catastrophic floods that left more than 200 dead and others missing.
Paris police said Sunday that 4,000 officers and 1,600 stadium staff will be deployed for a France-Israel soccer match to ensure security in and around the stadium and on public transportation a week after violence against Israeli fans in Amsterdam.
Gunmen open fired in a bar in central Mexico killing 10 people and injuring seven, a local official said.
Bitcoin on Sunday hit a new record above US$80,000. The world’s largest cryptocurrency surged in the run-up to Tuesday’s US presidential election, rose sharply immediately on election night after it became clear Donald Trump would win and has continued rising in the days since his victory.
The outfield lights at a baseball stadium in Cuba proved to be little match for Hurricane Rafael’s extreme wind.
Murray Sinclair’s family members say the late justice and senator has been laid to rest according to his wishes.
Canada's ambassador to the United States — and co-lead of the federal government's Team Canada war room — says U.S. president-elect Donald Trump has a different understanding of the bilateral relationship than he did during his first term in the White House.
NDP Leader Jagmeet Singh has thrown his weight behind a campaign fighting for better work rights for Kal Tire employees, joining a picket line of workers in Burnaby Saturday morning.
Just five more minutes of exercise doesn’t sound so bad, right? Especially when such a small amount may improve your blood pressure, according to a new study.
Researchers say taking a peek inside a person's brain is as difficult as understanding the universe or discovering the ocean in its entirety.
B.C. health officials say they have detected Canada's first-ever case of H5 avian influenza in a human.
Bernadett 'Bett'” Szabó, a 19-year-old Hungarian sex worker, was murdered in the Dutch capital in 2009. Now, more than 15 years after her death, police are hoping to uncover new information about her killing.
In 1916, Harold Wrong plucked a flower from the fields of Somme, France and tucked it into a letter he mailed home to Toronto. For decades, the type of flower sent remained a mystery.
Elwood Edwards, who voiced America Online’s ever-present 'You’ve got mail' greeting, has died Tuesday at his home in New Bern, N. C. He was 74.
Chu shared on his Instagram Stories that he and his wife Kristin Hodge welcomed their fifth child on Saturday, writing that he “can’t believe this happened while the movie is premiering.”
On Thursday morning, Dave Penny officially ended a suggested hundred-day isolation period that followed his diagnosis and stem cell treatment for non-Hodgkin's Lymphoma. On Thursday night, Penny returned to a stage at a downtown St. John's bar, regaling a small crowd with songs and stories with a distinctive Newfoundland flair.
The first 'Saturday Night Live' since Donald Trump's election victory began with the most somber of tones as a group of plainly dressed cast members, primarily women and minorities, described their new reality.
Shannon Davidson was let go from her executive role at a marketing firm last year after a merger led to cuts. She knew she wasn't done with her career yet, but finding her next workplace in her mid-50s was a daunting prospect.
Bitcoin on Sunday hit a new record above US$80,000. The world’s largest cryptocurrency surged in the run-up to Tuesday’s US presidential election, rose sharply immediately on election night after it became clear Donald Trump would win and has continued rising in the days since his victory.
Contract negotiations resume today in Vancouver in a labour dispute that has paralyzed container cargo shipping at British Columbia's ports since Monday.
Doom spending, or the practice of spending money to soothe fears about broader issues like politics or the economy, shows up everywhere from YouTube and TikTok videos to Reddit to personal finance discussions and data in surveys.
A Vancouver designer is making waves in the architectural world with an outdoor modular building created to address the city’s unrelenting housing crisis.
A rare letter signed by three of the U.S. Founding Fathers of the United States is going on sale, and is expected to fetch up to US$1 million when it goes under the hammer next week.\
The Edmonton Oilers may have found the break they were looking for.
No. 15 LSU has been criticized for unveiling a live caged tiger in its stadium for the first time in almost a decade before they were routed 42-13 by No. 11 Alabama in their SEC showdown.
A Maui man who lost a part of his leg to a shark bite is now out of the hospital and thanking those who saved his life and helped him recover.
Select Porsche owners in Canada have been told to stop driving their cars immediately and to seek repairs after an issue was identified that could cause wheels to separate from vehicles.
A driver's trip from London, Ont. to Ottawa to visit their girlfriend ended in a traffic stop for speeding on Highway 417, according to police.
Recall notices have been issued for some Volkswagen models from 2006 to 2019 for airbag safety issues.
A congestion crisis, a traffic nightmare, or unrelenting gridlock -- whatever you call it, most agree that Toronto has a congestion problem. To alleviate some of the gridlock, the Ontario government has announced it plans to remove bike lanes from three major roadways.
For the second year in a row, the ‘Gift-a-Family’ campaign is hoping to make the holidays happier for children and families in need throughout Barrie.
Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.
A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.
As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.
A group of women in Chester, N.S., has been busy on the weekends making quilts – not for themselves, but for those in need.
A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.
Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.
A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.
The union for locked-out port workers in British Columbia says the BC Maritime Employers Association cut off talks in less than an hour Saturday, refusing to budge on a final offer that the union has so far rejected.
A plan to allow corporations and other "commercial entities" to pay to sponsor civic assets, projects and programs is coming to Vancouver council next week.
Mounties on Vancouver Island are out with a warning about a "concerning" scam that has recently targeted several victims.
Taylor Swift’s Eras Tour is coming to Toronto this month and will likely be the most commercially successful concert series the city has ever seen.
Patrons were inside a movie theatre when a suspect fired bullets at the business’ doors on Saturday night, before the cinema was shot at again hours later in a second incident, police say.
A weapon that posed a “significant concern” for public safety, with photos allegedly shared across social media, has been confiscated from a Hamilton encampment.
A pair of 105-mm howitzers bark constantly as they turn plywood tank targets into kindling kilometres away on the windswept landscape of one of Canada's largest military bases.
On Saturday the City of Calgary held the first of three open houses seeking public input regarding the the intersection and roadways of Sarcee Trail and Bow Trail S.W.
Murray Sinclair’s family members say the late justice and senator has been laid to rest according to his wishes.
Three people, including an eight-month-old have died after a two-vehicle collision on Highway 401 in eastern Ontario Saturday afternoon, according to the Ontario provincial Police (OPP).
A stabbing incident that happened in the early hours of Sunday morning in the ByWard Market has seriously injured two individuals, according to the Ottawa Paramedic Service.
Firefighters and police are at the scene of a crash involving a pickup truck on Highway 174 on Sunday afternoon.
Researchers say taking a peek inside a person's brain is as difficult as understanding the universe or discovering the ocean in its entirety.
It's a century-old tradition that's carried on year after year with pride – we wear a poppy to honour our nation's veterans. But to retired lieutenant-colonel Henry F. Hall it's so much more.
Montreal police say a car was set on fire overnight Sunday in Montreal's Pointe-aux-Trembles area.
The Edmonton Oilers may have found the break they were looking for.
A national program has been using several methods of investigation since 2007 to identify the skeletal remains of unknown Canadian armed-forces members.
An investigation is underway in relation to an armed robbery that took place Thursday night in Wabasca, Alta.
Here’s what’s opened and closed across the Maritimes on Remembrance Day.
The Royal Canadian Legion Weymouth Branch 67 Remembrance Day ceremony will display its new basement, accessible doors and other upgrades thanks to community support.
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Murray Sinclair’s family members say the late justice and senator has been laid to rest according to his wishes.
Winnipeg police have identified two men involved in a stabbing incident earlier this week.
The Winnipeg Blue Bombers whipped the Saskatchewan Roughriders 38-22 in Saturday's CFL West Division final to earn their fifth consecutive trip to the Grey Cup.
The Saskatchewan Roughriders extended their Grey Cup drought to 11 years after losing 38-22 to the Winnipeg Blue Bombers in the CFL’s Western Final on Saturday.
The final round of ballots from Saskatchewan’s provincial election were tallied on Saturday, and a race that was previously too close to call has officially been declared.
Urban municipalities across southern Saskatchewan are preparing for their civic elections on November 13.
A man has been charged after a stabbing at an apartment building in Kitchener.
The Guelph Police Service is putting out a warning after two deaths in the downtown area.
Two new tributes to Canada’s veterans have been unveiled at the Elmira Cenotaph.
The Saskatchewan Roughriders extended their Grey Cup drought to 11 years after losing 38-22 to the Winnipeg Blue Bombers in the CFL’s Western Final on Saturday.
The Regina Rams claimed the Hardy Cup after a hard fought battle against the Saskatoon Huskies 19-14 on Saturday in the first all Saskatchewan U-Sports western conference final since 2002.
Elections Saskatchewan completed the final step in the vote counting process from the provincial election on Saturday.
CTVNewsNorthernOntario.ca is livestreaming the annual Remembrance Day ceremony at the Sudbury Community Arena starting Monday at 10:30 a.m.
Donald Trump has said he wouldn’t be a dictator — 'except for Day 1.' According to his own statements, he's got a lot to do on that first day in the White House.
Police have arrested a 15-year-old in connection with a break-in and $50,000 in damage done to the Centennial Arena in Elliot Lake in September.
On Friday, the Sarnia Police Service (SPS) received a report of an alleged abduction in the area of Kathleen Avenue and Walnut Avenue.
Three people were taken to hospital after a plane crashed in the Municipality of Southwest Middlesex.
London Knights Logan Hawery and Caleb Mitchell are returning from the U17 World Hockey Challenge with gold medals around their necks.
Crews responded to an overnight porch fire at a residence in Orillia, where all occupants managed to escape without injury.
A driver is facing multiple charges after a multi-vehicle collision on Highway 400 early Sunday morning.
OPP are investigating a Saturday evening incident in Caledon that resulted in one death.
One person has been arrested after Chatham-Kent Police Service (CKPS) received multiple complaints about an alleged drunk driver.
An individual is dead following a collision involving a motorcycle in Kingsville.
Donald Trump has said he wouldn’t be a dictator — 'except for Day 1.' According to his own statements, he's got a lot to do on that first day in the White House.
The union for locked-out port workers in British Columbia says the BC Maritime Employers Association cut off talks in less than an hour Saturday, refusing to budge on a final offer that the union has so far rejected.
Mounties on Vancouver Island are out with a warning about a "concerning" scam that has recently targeted several victims.
B.C. health officials say they have detected Canada's first-ever case of H5 avian influenza in a human.
The emergency department at South Okanagan General Hospital in Oliver, B.C., will be closed for 31 hours this weekend, the second such closure in a week and the third since the start of November.
Police in Kamloops, B.C., are reminding parents and guardians to check their children's Halloween candy after receiving a report of a mother finding a razor blade in one of her daughter's treats.
More than two years after Alannah Brown and Douglas Barker were found dead north of Penticton, police are asking for help identifying a vehicle they believe was associated with the crime.
The Southern Alberta Recreation Association is officially announcing the Town of Taber as next year’s host for the Southern Alberta Summer Games.
The Lethbridge Hurricanes broke open a close game with three goals in the first two minutes of the third period as they defeated the Warriors 7-3 in a game played Friday night in Moose Jaw.
There might not a lot snow just yet, but many southern Albertans are still itching to get outdoors.
Police have arrested a 15-year-old in connection with a break-in and $50,000 in damage done to the Centennial Arena in Elliot Lake in September.
Mayors of the five largest cities in northern Ontario met in North Bay the last two days to discuss a range of critical issues impacting their cities and the region.
Residents in the Sault expressed concerns ranging from vandalism to privacy invasions during recent consultations on the city's plan to install automated speed enforcement cameras.
Police in Newfoundland say a man was electrocuted Saturday by a downed power wire about 10 kilometres north of St. John's, N.L.
On Thursday morning, Dave Penny officially ended a suggested hundred-day isolation period that followed his diagnosis and stem cell treatment for non-Hodgkin's Lymphoma. On Thursday night, Penny returned to a stage at a downtown St. John's bar, regaling a small crowd with songs and stories with a distinctive Newfoundland flair.
A Memorial University scientist says the mysterious white blobs washing up on Newfoundland beaches are actually gobs of plastic -- and they need to be cleaned up.
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