Canada

Bank of Canada Governor Tiff Macklem said on Wednesday there was uncertainty about how quickly inflation would come back down due to the unique nature of the COVID-19 pandemic, which has helped drive up prices, Reuters reported. Macklem, speaking to the Senate banking committee, reiterated that interest rates would have to start going up this year to tackle inflation, which is currently 4.8%, more than double the central bank's 2% target. "There is some uncertainty about how quickly inflation will come down because we've never experienced a pandemic like this before," he said.

A company that operates a P.E.I. fish hatchery and grow-out facility has filed for bankruptcy, owing millions of dollars to multiple levels of government. According to bankruptcy trustee MNP Ltd., Halibut PEI voluntarily filed for bankruptcy on Jan. 14, CBC.ca reported. The company owes $9.5 million to its creditors, including the P.E.I. government, the Atlantic Canada Opportunities Agency and the Atlantic Fisheries Fund.

The Bank of Canada's decision to delay a rate hike for five more weeks will add fuel to Canada's scorching housing market as buyers scramble to clinch deals before borrowing costs rise, realtors said, Reuters reported. The Bank of Canada held its overnight rate at a record low 0.25% on Wednesday, but warned multiple increases would be coming soon. The U.S. Federal Reserve separately also said it would start hiking soon. Canada's housing market has been on tear throughout much of the pandemic, with prices up 39% nationwide from February 2020 to December 2021.

The Bank of Canada held interest rates unchanged but signaled it could tighten monetary policy in coming weeks to contain the highest inflation in three decades, Bloomberg News reported. Policy makers led by Governor Tiff Macklem left the central bank’s main policy rate at 0.25%, where it’s been since March 2020, amid uncertainty stemming from the resurgent coronavirus.

Canadian Prime Minister Justin Trudeau on Monday accused conservative politicians of stoking fear that COVID-19 vaccine mandates for cross-border truck drivers are exacerbating supply chain disruptions and fueling inflation, Reuters reported. The United States imposed a mandate, meant to aid the fight against the fast spreading Omicron variant of the coronavirus, on Jan. 22, while Canada's started on Jan. 15. The trucking industry has warned the measure will take thousands of drivers off the roads during what is already a dire labor shortage in the industry.

Brazilian power company Companhia Energetica de Sao Paulo (CESP) on Monday said its board of directors has approved terms of a deal with conglomerate Votorantim SA and Canada Pension Plan Investments Board (CPPIB) to merge the trio's energy assets in Brazil, Reuters reported. CESP is expected to become a full subsidiary of Votorantim and CPPI's joint venture VTRM Energia once the deal is closed. The terms of the transaction, which valued CESP at about 9.1 billion reais ($1.67 billion), were disclosed this month. The company has also scheduled a shareholder meeting for Feb.

Applications to Laurentian University from Ontario high school students were down 43.5 per cent this year, compared to the same period in 2021, CBC.ca reported. The Ontario Universities' Application Centre reported the university received 2,791 applications from Ontario high school students in January 2022 to start their studies in the fall. In January 2021, 4,942 high school students from Ontario applied to Laurentian. North Bay's Nipissing University saw a small 0.2 per cent increase in Ontario high school applicants in January 2022, while Sault Ste.

If Laurentian University is required to submit privileged information to Ontario's Legislative Assembly, it would cause "irreparable harm," argue legal counsel for the Sudbury university, CBC.ca reported. During court proceedings Tuesday, Laurentian's lawyers asked Chief Justice Geoffrey Morawetz of the Superior Court of Justice to stay the execution of a Speaker's warrant against the institution. The Ontario Legislature voted unanimously on Dec. 9 to issue a Speaker's warrant that would compel Laurentian to provide the province with privileged documents related to its insolvency.

Canadian businesses reported widespread challenges with supply chains, labor shortages and their ability to meet strong demand in a Bank of Canada survey that will stoke worries about inflation and fuel expectations of a rate hike as early as next week, Bloomberg News reported. The central bank’s quarterly survey of executives paints a picture of an economy pressed up against its limits. Over two-thirds of respondents expect annual consumer price gains to surpass 3% over the next two years.