In this edition:
- Bank of Canada raises policy rate 25 basis points, continues quantitative tightening
- Persistent inflation, higher interest rates will weigh on global economy, OECD predicts
- City of Welland adopts new strategic plan
- Niagara Falls GO train service interrupted this weekend
- Fort Erie officially asks Niagara Health to reverse urgent care decision
- Poor air quality prompts total open-air burn bans in Niagara
Bank of Canada raises policy rate 25 basis points, continues quantitative tightening
The Bank of Canada today increased its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. The Bank is also continuing its policy of quantitative tightening.
Globally, consumer price inflation is coming down, largely reflecting lower energy prices compared to a year ago, but underlying inflation remains stubbornly high. Canada’s economy was stronger than expected in the first quarter of 2023, with GDP growth of 3.1%. Consumption growth was surprisingly strong and broad-based, even after accounting for the boost from population gains. Demand for services continued to rebound. In addition, spending on interest-sensitive goods increased and, more recently, housing market activity has picked up.
The labour market remains tight: higher immigration and participation rates are expanding the supply of workers but new workers have been quickly hired, reflecting continued strong demand for labour.
Overall, the bank said, excess demand in the economy looks to be more persistent than anticipated.
Persistent inflation, higher interest rates will weigh on global economy, OECD predicts
The global economy must steer through a precarious recovery this year and next as inflation keeps dragging on household spending and higher interest rates weigh on growth, banks and markets.
That was the takeaway Wednesday from the latest economic outlook by the Paris-based Organization for Economic Cooperation and Development. The group, made up of 38 member countries, raised its growth forecast this year to 2.7% from an estimated 2.2% in November and foresaw only a tiny acceleration to 2.9% next year.
City of Welland adopts new strategic plan
Adopted by Council at the June 6 council meeting, the City of Welland’s 2023-2026 Strategic Plan: Charting our Future is the culmination of engagement and collaboration by city staff, Council, and the community. Authentic and impactful conversations were had with a wide range of individuals who attended in-person sessions, and businesses, organizations, agencies, and city staff had the opportunity to provide input with an online survey. The resident feedback summary had 241 respondents, businesses and organizations had 20 respondents, and city staff had 30 respondents.
Niagara Falls GO train service interrupted this weekend
GO Transit train service to Niagara Falls will be impacted this weekend, with train service ending at Aldershot GO in Burlington.
Weekend GO Transit train service between Niagara Falls and Burlington will be impacted this weekend, due to infrastructure work that needs to be done to prepare for upcoming construction of the Burloak Drive grade separation in Oakville.
Metrolinx, the provincial agency that oversees road and public transit planning in the Golden Horseshoe region, said the impacts affecting the Lakeshore West line between Oakville and West Harbour GO will start at 9 a.m. Friday and last until the end of Sunday, June 11.
Fort Erie officially asks Niagara Health to reverse urgent care decision
On Monday, June 5, 2023, the Town of Fort Erie called a Special Council Meeting to discuss the reduction of Urgent Care service hours at Douglas Memorial and its Port Colborne site by half.
A resolution by Council of the Town of Fort Erie requested, among other things, that Niagara Health reverse its decision to reduce hours are Fort Erie Urgent Care Centre effective July 5, 2023, and a continuation of full-service hours, 24 hours a day, seven days per week.
Poor air quality prompts total open-air burn bans in Niagara
Citing poor air quality from distant forest fires and the need to ensure it doesn’t get worse, as well as prolonged dry weather, Niagara’s municipalities have begun issuing total open-air burn bans.
Burn bans have have been issued by St. Catharines, Lincoln, Grimsby and West Lincoln.
Environment Canada has issued a Special Air Quality Statement for Niagara due to high levels of air pollution caused by smoke plumes from forest fires in Quebec and northeastern Ontario. Poor air quality is expected to persist into the weekend.
Did you know?
Focus on Climate
Canada wildfires smoke: climate change ‘accelerated conditions’, says New York mayor as Canada battles more than 400 blazes – live
With New York City being ranked briefly this morning as the city with the world’s worst air pollution, mayor Eric Adams warned that climate change has accelerated the conditions surrounding the smokey haze that has shrouded the city.
“While this may be the first time we’ve experienced something like this on this magnitude…it is not the last. Climate change accelerated these conditions.”
Adams went on to urge for more action towards addressing climate change issues, saying:
“New York City is clearly a national leader on public health and climate action and these dangerous air quality conditions are clearly an urgent reminder that we must act now to protect our city, our environment and the future of our children.”
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.