Despite a slight increase in Canada's inflation rate last month, the Bank of Canada remains determined to bring it down to 2%, with the possibility of another rate hike being considered in September. However, some economists believe that the positive overall figures may allow the Bank to pause on rate increases without a significant negative impact.
A majority of Canadians believe that companies are using inflation as an excuse to overcharge them, with this view consistent across all income groups, according to a survey by Modus Research. The public's perception is influenced by reports of record profits for major corporations, causing growing economic anxiety among Canadians.
The profitability of energy and mining corporations in Canada has contributed to the inflation crisis by driving up prices, while other industries struggled to pass on increased costs to consumers, according to a report by Statistics Canada. The report highlights the concentrated nature of inflationary pressures and calls attention to the failure of policymakers to address the issue at its source, allowing energy corporations to profit while consumers bear the burden of rising costs.
Bank of Canada Governor Tiff Macklem suggests that interest rates may not be high enough to bring inflation back down to target, indicating a hawkish approach after keeping borrowing costs at a 22-year high; Macklem highlights the need for more restrictive monetary policy to restore price stability and reduce inflation.
Bank of Montreal (BMO) is shutting down its indirect retail auto finance business, which will result in job losses, while Indigo Books & Music Inc. announced that founder Heather Reisman has returned as CEO, Amazon faces contract expiration with Ford, Shake Shack tests alternative frying oil, Cadence Bank CEO warns of a regional banking crisis, Canada risks losing over $50 billion in clean tech investments, government shutdown and oil prices are factors to watch, banks initiate $2.9 billion bond sale for Worldpay buyout, Joby Aviation plans to build air taxi production plant in Ohio, Canada's housing crisis will take years to solve, Tesla is in talks with Saudi Arabia for an EV factory, and a Toronto landlord prohibits electric vehicles on its property.
Google's generative AI, Bard, is introducing fact-checking and data analysis features to compete with the popular ChatGPT; FTX sues founder Sam Bankman-Fried's parents for allegedly enriching themselves at the expense of customers; Canadian Prime Minister Trudeau denies trying to provoke India after accusing them of involvement in a shooting; Canada's Trans Mountain pipeline expansion is set to disrupt oil flow to the US and increase prices; YouTube suspends Russell Brand's monetization after sexual assault allegations; Two 13-year-old girls are charged with stabbing another girl in Ontario; Canada's inflation rate rises to 4%, posing challenges for the Bank of Canada; Ukrainian President Zelenskyy plans to visit Canada after his UN and US visits.
Financial uncertainty has become the new normal for many Canadians as inflation erodes savings, according to a survey by RBC, while the US Federal Reserve maintains interest rates but projects a further rate increase by the end of the year and a tighter monetary policy through 2024, and the family of a North Carolina man sues Google for negligence after he drove off a collapsed bridge while following Google Maps directions.
Alberta Premier Danielle Smith plans to leave the Canada Pension Plan and set up an alternative provincial pension system, citing potential cost savings and more stable benefits, despite the Canada Pension Plan Investment Board doubting the credibility of the province's math; Canada's worsening diplomatic feud with India over allegations of Indian agents being involved in the killing of a Canadian citizen has led to the cancellation of a planned trade mission and the suspension of trade agreement talks; Union wage settlements in Canada are spiking following years of lagging behind inflation, potentially complicating the Bank of Canada's inflation efforts and leading to more labor disputes; Canada's inflation rate rose to 4% in August, driven by rising gasoline and rent prices, increasing the likelihood of another interest rate increase; Ford Motor Co. of Canada and the Unifor union have reached a deal to avert a strike by auto workers, subject to ratification; The best place to retire in Canada income-wise varies geographically, with generally better numbers from east to west and south to north.
A group of US senators, including Majority Leader Chuck Schumer, plans to visit China and hopes to meet with Chinese President Xi Jinping; Italian Prime Minister Giorgia Meloni faces challenges in avoiding provoking financial markets; Former Vice President Mike Pence criticizes Donald Trump for calling retired Gen. Mark Milley a traitor over phone calls made to China; Canadian National Railway resolves an internet connectivity failure that caused travel chaos in Toronto; The owner of an N.W.T. mine project sends its Canadian subsidiary into bankruptcy and closes down its processing plant; The Toronto Stock Exchange slumps to its lowest level in more than a year as the bond market suggests a recession warning; Top stocks to consider buying with $2,500 in Canada; Homeowners in Canada brace for higher mortgage payments as interest rates are expected to stay higher for longer; The Bank of Canada warns of the risk of firms raising prices more frequently and sharply, complicating inflation control efforts.
Canadian businesses and consumers are feeling the impact of higher interest rates, resulting in reduced spending and subdued sales, although inflation expectations remain high, posing a challenge for the Bank of Canada's upcoming interest-rate decision.
The Bank of Canada is expected to keep interest rates on hold as the economy slows down, although analysts believe future rate hikes are possible due to high inflation; Lil Yachty's concert in Vancouver was cancelled due to safety concerns when the audience rushed onto the floor; a senior in Calgary sold his home due to interest rate hikes and now struggles to find affordable rentals; three arrests were made at Calgary protests related to the Israel-Hamas conflict; many Canadian homeowners face higher monthly mortgage payments as their mortgages come up for renewal; Turkish President Erdogan has submitted a protocol for Sweden's admission into NATO; a judge in New Brunswick who ruled in a rent-reduction case owns an apartment building; a woman in British Columbia is accused of posing as a lawyer and charging for legal services without doing any work; the Bank of Canada is expected to keep interest rates steady amid a sluggish economy.
