Roundup: A note of optimism from the Bank of Canada

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The Bank of Canada’s decision to raise rates another quarter point yesterday was not a huge surprise, given that inflation is still running hot, and the labour market remains unsustainably tight, but what was of particular note was that the Bank was much more clear in saying that they are more likely to hold the rate at where it is if things continue in the current trajectory—though they did also provide the caveat that if things continue to run too hot they won’t hesitate to hike rates yet again. (Here is Kevin Carmichael’s great explanation of the decision).

It is also noteworthy that the Monetary Policy Report, which explains the economic landscape and gives some insight into the Bank’s thinking, was really quite optimistic in terms of the possibility of avoiding a recession, but seeing stalled growth in the middle of the year, with a return to slower growth by the end of the year—certainly more of a soft-landing scenario. It’s not guaranteed, mind you, given global economic forces and the mood of the public, but the report was not all doom and gloom, in spite of media narratives.

Ukraine Dispatch, Day 337:

Weeks after both Wagner Group mercenaries and Russia forces claim they have taken the town of Soledar, Ukraine only now has started to withdraw its forces from the area, given the heavy toll it is taking as Russians and mercenaries essentially keep feeding lives into the grinder. This puts Russian forces once step closer to the strategically important town of Bakhmut. Meanwhile, Germany has indeed agreed to send its Leopard 2 tanks to Ukraine, as they were expected to.

Good reads:

  • Justin Trudeau has announced there will be a “working meeting” with premiers on health transfers on February 7th, with hopes the deal will be sealed by the budget.
  • Here is a look at how Trudeau is trying to play to optimism in contrast to Poilievre’s refrain about everything feeling “broken.”
  • Sources™ say the government is trying to determine the number of Leopard 2 tanks that they can send to Ukraine.
  • The federal government and the AFN are back to negotiations over First Nations child welfare compensation to meet the Human Rights Tribunal’s conditions.
  • More details were released about the proposed NEXUS application workaround.
  • In spite of levying sanctions against 15 prominent Haitians, Canada has yet to seize any of their assets within our country.
  • Oil companies claim they can’t invest their record profits into reducing emissions just yet because they’re not ready to. (So, put that money in a trust? Is it that hard?)
  • The Commons’ industry committee held hearings on the proposed Rogers-Shaw merger deal, which is now awaiting sign-off from the minister.
  • The City of Ottawa plans to sue the federal government for taking part in an Ontario programme that reduced taxes for businesses suffering from the pandemic.
  • There is more proof that Danielle Smith was inappropriately pressuring her Attorney General over COVID charges; Smith is claiming the CBC has defamed her.
  • Alberta justice minister Tyler Shandro was at a Law Society hearing about his conduct, including making threats.
  • Matt Gurney makes the point that allies sending Ukraine different kinds of tanks will create logistical problems in maintaining them.

Odds and ends:

For National Magazine, I look at the Rogers-Shaw merger ruling and the bigger-picture implications around reforming competition law in Canada.

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