Canada Report: Central bank appears set for another large interest-rate increase

With inflation still running high, the central Bank of Canada appears to be preparing for a large interest-rate increase on Wednesday.

“Inflation in Canada has come down a little but it remains far too high,” bank Governor Tiff Macklem said.

“Our job is not done yet — it won’t be done until inflation gets back to the 2% target,” he said.

Aided by lower gas prices, the year-over-year inflation rate was 7.6% in July, down from 8.1%.

As a result, with inflation that high, it’s still a “major concern” and interest rate increases are the way to bring it down is the bank’s strategy.

Bank analysts suggest the key interest rate of the central bank will rise by 0.75 to 1 percentage points, taking it to 3.25% to 3.5%.

The strategy is to cool the economy and lower debt and spending.

Security forces consider increased protection for politicians

Canadian government security forces including the Mounties are reviewing whether to increase protection for politicians after a troubling incident involving the deputy prime minister.

A man approached Chrystia Freeland, yelling profanities and threatening her and staff as they entered an elevator in the lobby of Grande Prairie’s city hall.

Prime Minister Justin Trudeau said that police are investigating the incident, which he described as “unfortunate" and "aggressive bullying and hate-filled tactics of a small number of people.”

“It's extremely important that we demonstrate the strength of our democracy and Canadians being able to have proximity to those who represent them,” he added.

After New Democratic Leader Jagmeet Singh was verbally harassed in Peterborough, Ontario, earlier in the summer, members of Parliament were equipped with “panic buttons.”

Public Safety Minister Marco Mendicino said he has been subject to death threats on social media after his bill to curb gun ownership.

Full-page ad condemns Bell Media for LaFlamme firing

• A full-page newspaper spread signed by prominent Canadians, many of them women, was an open letter to Bell Media for firing Canada’s most-watched newscaster over her hair color.

The letter ran in the national Globe and Mail newspaper in support of Lisa LaFlamme , 58, whose firing was also alleged to have been for age and gender reasons.

Signed by 70 people, it called on the CTV Television Network to “make things right” for LaFlamme and Canadians.

In its defense, Bell Media said the change in its nightly news lineup had nothing to do with discrimination over her hair, gender or age.

Facts and figures

• The Canadian dollar is lower at 76 U.S. cents while the U.S. dollar returns $1.31 in Canadian funds, before exchange fees.

• The Bank of Canada’ key interest rate is steady at 2.5% while the prime lending rate at commercial banks is 4.7%.

• Canadian stock markets are lower, with the Toronto index at 19,388 points while the TSX Venture index is 637 points.

• The average price for gas in Canada is lower at $1.58 a liter or $6.00for a U.S. gallon in Canadian funds.

• Lotto Max: (Aug. 30) 5, 8, 12, 23, 39, 41 and 48; bonus 50. (Aug. 26) 3, 11, 22, 26, 29, 46 and 48; bonus 28.

• Lotto 6/49: (Aug. 31) 9, 18, 25, 33, 35 and 41; bonus 19. (Aug. 27) 9, 12,19, 20, 23 and 28; bonus 31.

Regional briefs

• House sales in the Greater Toronto Area are down 34% as mortgage and interest costs are rising. The Toronto Regional Real Estate Board said even with the increase, sales were up almost 15% at 5,627. This was because buyers returned to take advantage of prices that are still lower than elevated levels and a sellers’ market earlier in the summer. Prices are up by 8.9%, with the average selling price for all home types combined in Toronto up by 0.9% at $1.07 million Canadian.

This article originally appeared on The Ledger: Canada's central bank could raise rates another full point this week