In this edition:
- Bank of Canada maintains interest rates and continues quantitative tightening
- Lack of Ministerial long-term plan is slowing tourism sector growth: Acting AG
- Free parking in downtown St. Catharines returns December 11
- Welland approves budget with 3.15% tax increase
- Canadian trade surplus widens to $3 billion
- Niagara College beer festival to feature unique student-crafted brews
- St. Catharines Club building put up for sale
- Grimsby to consider licensing short-term rental accommodations
- Oil and gas emissions cap coming Thursday, targets 2026 start date: CP source
- Smart Prosperity Institute publishes reports on building zero-emissions vehicle sector
- Focus on Climate
Bank of Canada maintains interest rates and continues quantitative tightening
The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. At the same time, the Bank announced that it is continuing its policy of quantitative tightening.
In a media release, the Bank noted that inflationary pressures were easing due to several factors. Growth in the euro area has weakened and, combined with lower energy prices, this has reduced inflationary pressures. Oil prices are about $10-per-barrel lower than was assumed in the October Monetary Policy Report (MPR). While U.S. economic growth has been stronger than expected, led by robust consumer spending, the Bank said it was likely to weaken in the months ahead as past policy rate increases work their way through the economy.
In Canada, economic growth stalled through the middle quarters of 2023. Real GDP contracted at a rate of 1.1% in the third quarter, following growth of 1.4% in the second quarter. Higher interest rates are clearly restraining spending: consumption growth in the last two quarters was close to zero, and business investment has been volatile but essentially flat over the past year.
The Bank’s Governing Council warned that it is still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed.
Lack of Ministerial long-term plan is slowing tourism sector growth: Acting AG
Ontario’s economic growth from the tourism industry is being limited because the Ministry of Tourism, Culture and Sport does not have an effective long-term strategic plan for supporting and growing tourism in the province, Acting Auditor General Nick Stavropoulos said today.
If some advertising costs now spent to market to Ontarians were reallocated to advertise in the United States, Ontario could potentially see an increase in U.S. visitors and tourism spending, which would provide a greater economic benefit to Ontario overall, the agency suggested.
The AG’s audit found the Ministry did not always approve support in a timely way for events such as arts, food and music festivals across the province. This resulted in event cancellations, impacting communities and businesses that benefit from visitors and their spending to bolster the local economy.
Free parking in downtown St. Catharines returns December 11
As of next week, if you are heading to downtown St. Catharines or Port Dalhousie for holiday activities, you will be able to enjoy the gift of free parking on weekday afternoons.
The annual parking promotion, offered by the City of St. Catharines and the St. Catharines Downtown Association, begins on Monday, Dec. 11. The program was launched to bring people downtown during the holiday season.
Welland approves budget with 3.15% tax increase
The City of Welland’s 2024 budget is set after Councillors provided and voted on their final amendments to the Mayor’s proposed budget, settling on a municipal tax levy increase of 3.15 per cent after assessment growth of 3.08 per cent.
This rate amounts to an approximate $56 annual increase for an average home assessed at $230,000, the City said in a statement. Residents will also see an approximate increase of $34 on their water and wastewater bills for the low residential user.
Canadian trade surplus widens to $3 billion
In October, Canada’s merchandise imports fell 2.8%, while exports edged up 0.1%, Statistics Canada reported today. As a result, Canada’s merchandise trade surplus with the world widened from $1.1 billion in September to $3.0 billion in October.
The increase came despite declines in 6 of the 11 product sections. Excluding energy products, exports rose 0.5%. In real (or volume) terms, total exports edged down 0.1%.
Niagara College beer festival to feature unique student-crafted brews
Silver bells are ringing for Niagara College Brewmaster students as they prepare to cap off their studies by hosting Project Brew in early December.
This will mark the 25th edition for Project Brew at NC– a silver celebration for the student-led festival which has become a rite of passage for final-term students from NC’s trailblazing Brewmaster and Brewery Operations Management program. While Project Brew gives the public a taste of unique craft beers from the next generation of beer professionals, student organizers have an opportunity to showcase their brews, and gain planning and event management skills during their last term of study.
St. Catharines Club building put up for sale
The future of a long-standing private club in St. Catharines and the building it calls home is up in the air.
St. Catharines Club general manager confirmed the Ontario Street building has been put up for sale. The listing for the property is now live and a sealed offer process will take place.
“The membership has decided to move forward with selling the building,” GM Vanessa Groeneveld said in an email.
Grimsby to consider licensing short-term rental accommodations
Although short-term rentals such as Airbnbs are not allowed in Grimsby, more than 128 are currently listed online.
In response to this, Coun. Jennifer Korstanje introduced a motion at the Dec. 4 council meeting for the town to look into a licensing system for short-term rentals. Currently, the town’s bylaws only allow for Bed and Breakfasts.
But a quick google search told bylaw officer Henry Boese that the town has more than 120 short-term rentals listed on sites such as Airbnb.
Oil and gas emissions cap coming Thursday, targets 2026 start date: CP source
Canada is poised to outline a federal emissions cap on the oil and gas sector using a cap-and-trade system that would begin as early as 2026, says a federal government source.
The source, who spoke on the condition of anonymity to discuss matters not yet made public, tells The Canadian Press that a framework for the cap will be published Thursday.
The target will not be as strict as the emissions cap estimated last year in the government’s emissions reduction plan.
Smart Prosperity Institute publishes reports on building robust zero-emissions vehicle sector
Over the past two years alone, Ontario has attracted $16.5 billion in investments from global automakers, the Canadian federal government, and ZEV batteries and battery materials suppliers to grow the province’s emerging ZEV and battery manufacturing supply chain. This is a big opportunity for the province, according to the Smart Property Institute, and for workers to have good, high-quality careers in communities throughout Ontario.
A team of researchers at Smart Prosperity Institute, with support from Future Skills Centre, dove into these questions, and their findings have been released in a suite of three reports.
Did you know?
iPhones represent 62% of the Canadian market, but only 29% of the world.
Focus on Climate
Canadian SMBs lack confidence in their ability to reduce greenhouse gas emissions: KPMG
Canadian companies are finding it difficult to reduce their greenhouse gas (GHG) emissions, new research from KPMG in Canada reveals.
KPMG’s 2023 Private Enterprise Business Survey found that seven out of 10 small- and medium-sized businesses (SMBs) said they lack the time and resources to make it a priority. And while 78 per per cent of SMBs have established policies or initiatives to reduce their emissions footprint, less than a third feel very confident in their plans to reduce emissions across their value chain.
Climate tipping points are nearer than you think – new report warns of catastrophic risk
Through the Daily Updates, the GNCC aims to deliver important business news in a timely manner. We disseminate all news and information we feel will be important to businesses. Inclusion in the Daily Update is not an endorsement by the GNCC.
