愛污传媒

Business

    • Bank of Canada on track for rate hike after GDP growth slows: economists

    Statistics Canada's offices at Tunny's Pasture in Ottawa are shown on Friday, March 8, 2019. (THE CANADIAN PRESS/Justin Tang) Statistics Canada's offices at Tunny's Pasture in Ottawa are shown on Friday, March 8, 2019. (THE CANADIAN PRESS/Justin Tang)
    Share
    OTTAWA -

    Economists say the Bank of Canada is still on track for another oversized rate hike on Wednesday after the latest Statistics Canada data showed the pace of economic growth slowed in the first quarter.

    The federal agency said Tuesday at an annualized rate of 3.1 per cent in the first quarter, helped by business investment and household spending.

    The result was down from an annualized rate of 6.6 per cent in the fourth quarter of 2021 as export volumes dropped 2.4 per cent for the quarter, following two consecutive quarterly increases, due in part to decreased trade in energy products.

    Paul Ashworth, chief North American economist at Capital Economics, said the growth for the first three months of the year was well below the consensus estimate, but broadly in line with the Bank of Canada's April monetary policy report.

    "The unexpected weakness in first-quarter GDP growth was principally due to a downward revision to the January data, which now shows a 0.2 per cent month over month decline, as the Omicron-related restrictions had a bigger impact than previously thought," Ashworth wrote in a report.

    However, he said the real economy remains on a strong footing, which means the Bank of Canada can press ahead with raising its key interest rate by half a percentage point on Wednesday.

    The Bank of Canada is expected by economists to raise its key interest rate target by half a percentage point to 1.5 per cent in its decision Wednesday in an effort to slow inflation which is running at its hottest pace in three decades.

    The annual inflation rate hit 6.8 per cent in April, its highest level since January 1991, while the Bank of Canada has a target of two per cent for the annual rate.

    The central bank, which slashed interest rates at the start of the pandemic, began raising its key rate earlier this year with a quarter-point hike in March and another half a percentage point in April.

    The overall growth for the first quarter came as the economy grew 0.7 per cent in March and Statistics Canada said its preliminary reading for April indicates the economy grew 0.2 per cent for the month, but cautioned the figure would be revised when it releases its official figure on June 30.

    RSM Canada economist Tu Nguyen said the lower-than-expected figures for the first quarter won't likely change anything for the Bank of Canada because growth is still solid.

    "And when we pick out the export figures in the first quarter, we see that domestic demand among businesses and consumers is still very solid, and I think that's where the Bank of Canada is basing its decision on," she said.

    And Nguyen added COVID restrictions have continued to loosen, so the services sector will likely continue to pick up as things return to full capacity.

    Growth in the first quarter came as Statistics Canada said household spending rose 0.8 per cent to mark a third consecutive quarterly increase.

    Spending on durable goods gained 2.6 per cent in the first quarter, helped by a 16.1 per cent increase in spending on new passenger cars and a 3.5 per cent gain for new trucks, vans and sport utility vehicles. However, Statistics Canada noted that despite the increases, spending on automobiles remained lower than pre-pandemic levels, as supply chain issues continued to hurt the auto sector.

    Residential construction gained 4.3 per cent as spending on renovations rose 9.3 per cent, resale costs gained 4.6 per cent and new construction rose 0.2 per cent.

    Business investment in non-residential structures rose 2.9 per cent and investment in machinery and equipment gained 0.9 per cent in the quarter, while spending on engineering structures rose 3.5 per cent.

    Statistics Canada also said compensation of employees rose 3.8 per cent on a nominal basis for the quarter. Excluding the third quarter of 2020, it said it was the largest quarterly increase since the second quarter of 1981.

    The agency said significant wage growth was seen across the economy, including in professional and personal services, trade, manufacturing, health care and social assistance and construction industries.

    Nguyen said the Bank of Canada will be concerned that higher wages could mean persistent inflation

    "That's not what the bank wants at all, so they will be trying to hamper that down and trying to control long run inflation expectations," she said.

    This report by The Canadian Press was first published May 31, 2022.

    CTVNews.ca Top Stories

    The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.

    A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.

    He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

    Canada's discount airline is suspending operations to and from Saskatoon.

    A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.

    Canada

    • Two B.C. RCMP officers won鈥檛 face criminal charges for their use for force that left a man who had been arrested for public intoxication with a concussion, a torn shoulder and a chunk of his hair missing 鈥 but they could face professional discipline.

    • Speed was a possible factor in a Tuesday night rollover involving a semi-truck that left 17 cows dead. In a news release Wednesday, Calgary police said officers were called to the area of Stoney Trail S.E. and Macleod Trail S.E. around 8:10 p.m. for a reported rollover involving a semi-truck carrying 95 cattle.

    • A Real Canadian Superstore in B.C.'s Fraser Valley was evacuated Tuesday night due to a "suspicious" fire in the toilet paper aisle, according to authorities.

    • The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    • He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

    World

    Politics

    Health

    Sci-Tech

    • Vancouver Fire Rescue Services received its first shipment of new firefighting gear on Wednesday, advancing the department's plans to reduce cancer risk for its members.

    • A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.

    Entertainment

    Business

    • Canada's discount airline is suspending operations to and from Saskatoon.

    • Things could be looking up for Waterloo, Ont.-based company and former tech darling Sandvine, after being removed from the U.S. Department of Commerce Entity List earlier this week.

    Lifestyle

    • A new resident at a Manitoba animal rescue has waddled her way into people's hearts.

    • The Radium Hot Springs in British Columbia's Kootenay National Park has undergone a $29-million makeover.

    Sports

    Autos

    Local Spotlight

    He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

    A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.

    Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.

    A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.

    A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.

    A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.

    Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.

    Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.

    The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.

    • Legend has it that on a dark evening in 1988, friends of Supt. Joe Atherton quietly buried his body on the site of the old provincial RCMP headquarters in Vancouver.

    • Since the record-breaking atmospheric river hit Metro Vancouver last Friday, 266 drivers have filed ICBC claims for water damage to their vehicles. In some places, flood water was so deep, cars floated away with the drivers still inside, and the engine running.

    • Brittany La Torre and her husband Marc moved into their West Vancouver home just six months ago, but after last weekend's storm brought a torrent of muddy water and debris into their basement, knocking out power, they're not sure whether they'll be living in it six months from now.

    • He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

    • Brampton is looking to the federal and provincial government to address the growing number of its vulnerable international students being exploited and trafficked.

    • A proposed inner-city apartment complex development by Anthem Properties is raising concerns for some residents of Hillhurst and West Hillhurst.

    • A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.

    • Speed was a possible factor in a Tuesday night rollover involving a semi-truck that left 17 cows dead. In a news release Wednesday, Calgary police said officers were called to the area of Stoney Trail S.E. and Macleod Trail S.E. around 8:10 p.m. for a reported rollover involving a semi-truck carrying 95 cattle.

    • One person has died and others have been injured after a two-vehicle collision involving a tractor trailer and a car on Highway 7 in eastern Ontario, according to police.

    • Homeowners with a variable rate mortgage in Ottawa can expect to see some savings thanks to a significant rate cut by the Bank of Canada.

    • A Zamboni driver in western Quebec has been arrested on suspicion of impaired driving after a low-speed crash at a hockey rink on Monday.

    • A pedestrian is in critical condition after being struck by a car in Saint-Michel Wednesday evening.

    • Nigel Berkley and CRARR plan to file complaints with the police ethics commissioner and the human rights commission after Berkley was repeatedly stopped while driving his mother's car over four months.

    • Montreal Mayor Valerie Plante will not be seeking re-election.

    • An Edmonton tow truck operator has been charged after police say he refused to release a vehicle to its owner.

    • The City of Edmonton has a long road ahead to replace aging ice arenas as demand for ice time increases.

    • The leader of Alberta's Official Opposition rolled up his sleeves for his COVID-19 and flu shots today, opting to receive them in front of media because he's concerned about vaccine uptake.

    • A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.

    • The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    • A volunteer treasurer is facing charges after funds went missing from Nova Scotia Premier Tim Houston鈥檚 riding.

    • A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.

    • A 59-year-old man has died following a crash involving three vehicles that started after a tire fell off a car on the Trans-Canada Highway Wednesday morning in the RM of Tache.

    • A Manitoba inmate who was released from custody by mistake has been arrested, according to Winnipeg police.

    • Former Saskatchewan Party MLA Gary Grewal is defending his conduct and disagreeing with a recent report from the Conflict of Interest Commissioner (COIC) 鈥 which found he broke rules that prohibit MLAs from being involved with government contracts.

    • Southey RCMP say drivers should expect delays on Highway 6 Wednesday night after a serious crash.

    • Regina police says officers will provide an update Thursday in its search for the suspect of a homicide that took place in the city during the summer of 2023.

    • Detective Robert Hofstetter examined Erb鈥檚 home after her death and came to several conclusions based on the blood stains he found there.

    • A psychologist who recently assessed Geovanny Villalba-Aleman believes he may have experienced a psychotic break before stabbing three people in a gender studies class at a University of Waterloo.

    • Things could be looking up for Waterloo, Ont.-based company and former tech darling Sandvine, after being removed from the U.S. Department of Commerce Entity List earlier this week.

    • The race to form government is heating up ahead of the provincial election on Monday. Both the Saskatchewan NDP and the Saskatchewan Party feel they have the momentum as each leader has been focusing on different areas of the province as the campaign trail nears its end.

    • Canada's discount airline is suspending operations to and from Saskatoon.

    • The Saskatoon civic election is drawing closer, with mayoral candidates outlining their visions to keep the city competitive and attract businesses.

    • A Sudbury jury has found Felicity Altiman guilty of second-degree murder in the December 2020 stabbing death of a Sudbury man.

    • It only took minutes for North Bay pharmacist Brian Chute to be out $1,500 after fraudsters deceptively swapped his bank card with another.

    • The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    • Under tough cross-examination at the London courthouse on Wednesday, Rachel Johnson, 21, was asked a number of times why there was a delay in calling 911

    • A 27-year-old man is miraculously alive after his pickup went over Hawk Cliff near Port Stanley. Fire fighters estimate that from the top to bottom of the embankment is around 270 feet.

    • OPP have confirmed that a transport truck driver crashed into a historic home just southeast of London this morning.

    • A haunted house in the Town of Innisfil is causing a real scare for some people a week before Halloween.

    • Barrie police conducted a search on Wednesday of the last place Autumn Shaganash was seen in hopes of giving her family some answers to her mysterious disappearance.

    • A 34-year-old motorcyclist has died following a collision in Barrie鈥檚 south end on Tuesday.

    • Windsor Fire and Rescue Services has been working to prepare for heightened HAZMAT risk ahead of relaxed restrictions around the transportation of some hazardous materials across the Ambassador Bridge.

    • As hospitals elsewhere in Ontario reintroduce mask mandates due to rising respiratory illnesses, Windsor hospitals are taking a more measured approach.

    • Now that production is set to begin at Windsor鈥檚 battery plant, NextStar is looking for some employees to make that production happen.

    • Two B.C. RCMP officers won鈥檛 face criminal charges for their use for force that left a man who had been arrested for public intoxication with a concussion, a torn shoulder and a chunk of his hair missing 鈥 but they could face professional discipline.

    • When 16-year-old Kaydence Bourque was struck and killed in a crosswalk on Cedar Hill Cross Road in Saanich in 2021, the community was shaken to the core.

    • A man who fired at least 19 gunshots at an RCMP detachment in northern British Columbia, narrowly missing officers inside, has won a reduced prison sentence from the province's highest court, which ruled the sentencing judge failed to fully weigh the man's mental illness at the time.

    • Dave Lindsey began growing giant pumpkins to bring a bit of magic to his grandkids' Halloween.

    • A U.S. District Court judge in Montana has sentenced a 27-year-old man from Kelowna, B.C., to 18 months in prison for using fake names to buy guns with the aim of selling them in Canada.

    • Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.

    • Graduate students looking to become mental-health professionals will have more opportunities to study in the University of Lethbridge鈥檚 Master of Education Counselling Psychology program.

    • A dazzling light display is making its return to Lethbridge this holiday season.

    • As part of anniversary celebrations, the City of Lethbridge is inviting the community to see VisitLethbridge.com Arena like they never have before.

    • The lack of 24-hour public washrooms has been a long-standing issue in the Sault, especially considering the rise in homelessness.

    • The union representing the fire rangers with the Ministry of Natural Resources says money won鈥檛 fix the systemic problems in the workplace.

    • Rallies by a group called Voices Against Violence took place across the country on Monday, including Sault Ste. Marie.

    N.L.

    Shopping Trends

    The Shopping Trends team is independent of the journalists at 愛污传媒. We may earn a commission when you use our links to shop.聽Read about us.

    Stay Connected
    Follow 愛污传媒