Canada column for
Sunday, Jan. 21/18
THE CANADIAN REPORT
(c) By Jim Fox
The cost of
borrowing has gone up again as Canada’s central bank raised its trendsetting
interest rate.
The jump by
one-quarter percent by the Bank of Canada is the third increase since last
summer and the highest rate in nine years.
An impressive
increase in economic numbers led the bank to raise the rate but it warned of
the potential impact of uncertainties about rewriting the North America Free
Trade Agreement.
There’s speculation
the bank will increase the rate at least twice more this year but potential
negatives about the agreement’s outcome could affect its outlook.
The bank said “some
continued monetary policy accommodation will likely be needed” to keep the
economy operating close to its full potential.
“We can't just
relax and assume that it would be a small shock,” said bank governor Stephen
Poloz.
Trade impacts of
the deal’s demise might not have such a major impact on Canada but would likely
impact the amount of investment in the country.
Canada’s major
banks almost immediately raised their prime lending rate by 0.25 percent to
3.45 percent.
---
The Greater Toronto
Area is still in the running for Amazon Inc.’s second North American
headquarters.
It is the only
Canadian city to make the short list of 20 candidates, with the rest in the
U.S., after the company pared down its list of 238 applications.
Amazon said it will
invest about $5 billion for the proposed headquarters and hire 50,000 employees.
---
News in brief:
- Three railway
workers have been found not guilty of criminal negligence in the deaths of 47
people in the Lac-Megantic disaster in 2013. A jury deliberated for nine days
to reach the verdict for train engineer Tom Harding, Richard Labrie, traffic
controller, and Jean Demaitre, manager of train operations. The tragedy that
wiped out the much of the town’s center was caused when an unattended runaway
train carrying crude oil derailed and exploded.
- Fear of crime has
prompted the Canadian government to urge sun seekers to “exercise a high degree
of caution” in Jamaica. The warning follows a military lockdown in St. James
Parish that takes in the popular Canadian tourist destination of Montego Bay.
Anyone staying at a resort in the affected area should “restrict their
movements” to the property, the warning said. A Winnipeg couple was found dead earlier
this month while visiting Jamaica.
---
Facts and figures:
The Canadian dollar is lower at 79.98 cents
U.S. while the U.S. dollar returns $1.25 in Canadian funds before exchange
fees.
The Bank of Canada’s key interest rate has
increased by 0.25 percent to 1.25 percent while the prime-lending rate is 3.45 percent.
Stock markets are higher, with the Toronto
exchange index at 16,353 points while the TSX Venture index is 880 points.
The average price for gas in Canada is up to $1.19
a liter or $4.52 (Canadian) for a U.S. gallon.
Lotto 6/49: (Jan. 17) 6, 24, 34, 39, 43and 44; bonus 8.
(Jan. 13) 21, 26, 32, 40, 42, 44; bonus 12. Lotto Max: (Jan. 12) 1, 8, 16, 19, 26,
34 and 41; bonus 10.
---
Regional briefs:
- Heavy rain and
unseasonably warm temperatures that melted a significant amount of snow has led
to severe flooding, power outages and evacuations across Atlantic Canada. More
than 100 people in Musquash, New Brunswick had to leave their homes as water levels
in a dam rose. Thousands of people lost their power while there was also heavy
flooding and infrastructure damage in western Newfoundland.
- There will no
longer be whales, dolphins and porpoises at the Vancouver Aquarium after a long
battle with animal activists. Aquarium CEO John Nightingale said the decision
was made because “the controversy, the distraction, the dialogue in the
community had begun to limit our ability to pursue our ocean conservation
mission.” Peter Fricker of the Vancouver Humane Society said the decision is a
major victory for animal welfare in keeping them in captivity.
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Jim Fox can be reached at canadareport@hotmail.com
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