Bank of Canada cuts key interest rate by quarter percentage point to 4.5%
OTTAWA – The Bank of Canada cut its key interest rate for a second consecutive time on Wednesday, but warned the path back to two per cent inflation may be uneven and would ultimately determine the pace of future rate cuts.
The central bank says its decision to lower its policy rate by a quarter percentage point was motivated by easing price pressures and weakening economic conditions.
Its key interest rate now stands at 4.5 per cent.
In his prepared statement, governor Tiff Macklem noted that as inflation edges closer to target, the central bank is also trying to avoid the risk of the economy and inflation weakening by more than expected.
The Bank of Canada delivered its first interest rate cut in four years last month, marking a major turning point in its battle against high inflation.
High borrowing costs have caused a pullback in spending by both consumers and businesses, which economists say has helped take the pressure off price growth.
Canada’s annual inflation rate fell back to 2.7 per cent in June after temporarily flaring up in May.
Ethics commissioner flags conflict at Sustainable Development and Technology Canada
OTTAWA (CP) – The ethics commissioner says the former chair of a foundation responsible for doling out federal funds for sustainable technology projects failed to recuse herself from decisions that benefited organizations to which she had ties.
Sustainable Development and Technology Canada was abolished last month in response to an auditor general report that cited lapses in the green fund’s handling of public money.
Annette Verschuren became chair of the board for Sustainable Development and Technology Canada in 2019, but also continued to serve on the boards of the Verschuren Centre for Sustainability in Energy and the Environment and the MaRS Discovery District.
Ethics commissioner Konrad von Finckenstein finds that she failed to recuse herself from decisions that benefited the two organizations with which she was affiliated, though she did often abstain from voting.
Advocate warns of impending ‘crisis’ in B.C. child welfare staffing
By: Ashley Joannou
B.C. (CP) – British Columbia’s child welfare system is either in a state of crisis or close to it with understaffing and unmanageable workloads, the province’s representative for children said.
A report released by Jennifer Charlesworth Tuesday said the environment for social workers at the Ministry of Children and Family Development is unhealthy for staff, characterized by undue stress, burnout and fear, and there’s no time for the government to wait to address the “critical circumstances.”
The latest investigation comes days after her report on the torture death of an 11-year-old boy who died at the hands of relatives after not being checked on by a social worker for seven months.
Charlesworth said the boy’s death happened within the context of a child welfare office that was not fully staffed, had unstable and changing local leadership, and had an extended period of social worker medical leave with no backfill.
Her office conducted a survey of 700 social workers and managers and more than 80 per cent said they are unable to properly do their jobs because their caseloads are too high.
House committee launches investigation into purchase of Canada’s new $9M condo in NYC
OTTAWA (CP) – A House of Commons committee will look into the Liberal government’s recent purchase of a $9-million condo in Manhattan for its consul general to New York.
The government operations and estimates committee unanimously agreed today to hold several meetings next month to investigate the purchase.
The committee has directed Global Affairs Canada to provide a list of properties, including addresses and prices, that were viewed or considered for purchase for the consul general’s official residence in New York.
It is also calling several witnesses including Tom Clark, consul general to New York, the deputy minister of Global Affairs, representatives from the Procurement Department and Treasury Board, and a panel of New York City real estate agents.
The committee also says it will call Foreign Affairs Minister Mélanie Joly to testify if necessary.
Global Affairs has said a previous New York City residence, purchased in 1961, wasn’t up to code and did not meet the department’s standards, prompting the new condo purchase last month.
Feds were warned about setting ‘significant precedent’ with Ukraine visa program
By: Laura Osman
OTTAWA (CP) – Federal immigration officials warned the government it risked undermining the temporary immigration system with the design of the emergency visa program for war-displaced Ukrainians, newly released court documents show.
Immigration Department staff raised the concern in a memo to Sean Fraser, immigration minister at the time, shortly after the program was announced.
The memos outline the design of the Ukraine visa program, which allowed an unlimited number of Ukrainians and their family members to come to Canada to wait out the war.
The policy also waived the requirement for fleeing Ukrainians to promise to leave when their visa expires, against the advice of department staff.
Staff cautioned that waiving the requirement — the foundation of the temporary resident program — would set an “expectation that it could be done for other populations, not only those affected by conflict.”
The documents were disclosed as part of a proposed lawsuit against the federal government by three Afghan Canadians, who allege Canada discriminated against Afghan refugees by treating them differently than it did Ukrainians fleeing the Russian invasion.
The lawsuit hasn’t yet been certified by the court.
