Category: Economic

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Economic

Bank of Canada maintains overnight rate target at 3/4 per cent

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The Bank of Canada today announced that it is maintaining its target for the overnight rate at 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent.

Inflation in Canada continues to track the path outlined in the Bank’s April Monetary Policy Report (MPR). Total CPI inflation is near the bottom of the Bank’s 1 to 3 per cent inflation control range, largely due to the transitory effects of sharply lower energy prices. Core inflation remains above 2 per cent, boosted by the pass-through effects of past depreciation of the Canadian dollar, as well as certain sector-specific factors. Seeing through the various temporary factors, the Bank estimates that the underlying trend of inflation is 1.6 to 1.8 per cent, consistent with persistent slack in the economy. 

The outlook for the Canadian economy also remains largely in line with the April MPR. While a weak first quarter in the United States has raised questions about that economy’s underlying strength, the Bank expects a return to solid growth in the second quarter. This will help advance the rotation of demand in Canada toward more exports and business investment. Recent indicators suggest consumption in Canada is holding up relatively well, given the impact of lower oil prices on gross domestic income.

Despite the recent back-up in global bond yields, financial conditions for Canadian households and firms remain highly stimulative. The Canadian dollar has strengthened in recent weeks in the context of higher oil prices and a softer U.S. dollar. If these developments are sustained, their net effect will need to be assessed as more data become available in the months ahead.

Although a number of complex adjustments are under way, the Bank’s assessment of risks to the inflation profile has not materially changed. Risks to financial stability remain elevated, but appear to be evolving as expected. Weighing all of these risks, the Bank judges that the current degree of monetary policy stimulus remains appropriate and therefore the target for the overnight rate remains at 3/4 per cent.

Information note:

The next scheduled date for announcing the overnight rate target is 15 July 2015. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.

Source:: http://www.bankofcanada.ca/2015/05/fad-press-release-2015-05-27/

      

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Economic Ft Mac

Garage Sale for Charity Helps Out Local Women’s Shelter

garage sale, charity, local women's shelter

A local garage sale for charity has helped out a local women’s shelter, and this is just another example of the community coming together to help others out. The event raised $7,000 for the Fort McMurray Family Crisis Society’s Unity House women’s shelter. The Royal LePage True North Realty’s National Garage Sale for Shelter event has become an annual event, and this was the 7th year in a row that Royal LePage True North Realty has come through for charity. True North Realty owner Marian Barry said “It went really well, we were crazy busy. Every Mother’s Day weekend for the past seven years, all Royal LePage real estate companies across Canada hold a garage sale on the same day.” Local residents made donations to the garage sale, and Matco Moving Storage donated their services and picked up the donations.

The charity garage sale for the local women’s shelter was proof of support from the local community Barry said “(It’s) overwhelming, actually. We’ve had so many people donate items to us to put in the garage sale. It’s fun, right? It’s a ton of work, but everybody has a great time.” According to Family Crisis Society executive director Michele Taylor “We totally depend on it for operations of Unity House. You have to get community support, community fundraising … it’s absolutely fundamental to us continuing to offer programs and services.” The amount raised by the event this year took in a little less than half of last years fundraising total. Taylor responded “It sounds like we might be a little bit down this year and that’s because of the economic climate that we’re in. We’re finding that sponsorship of our events is way down, but donations are steady.”

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Alberta Economic Ft Mac Politics

The Oilsands Region Unemployment Rate is Higher Than the Average for the Province and Nation

unemployment rate, oilsands region

According to recent reports the oilsands region unemployment rate is very high, even higher than the average for the province and the nation as a whole. The rate of unemployment in the area has doubled in the last year. According to Data Statistics Canada the unemployment rate for the Wood Buffalo-Cold Lake region was 8.3% in April 2015. The national rate for the same time was 6.8%, and the provincial rate was 5.5%. These numbers are worrisome for those who live and work in the oilsands region. They are the result of dropping oil prices and the elimination of 3,500 jobs in the energy sector in Alberta. There are some who are advocating for optimism and saying that things will improve.

When asked about the unemployment rate in the oilsands region Alberta Federation of Labour President Gil McGowan stated “Almost all the heavy oil projects in the Fort McMurray areas have prices returning to five year averages, which is a good sign for future employment. Alberta doesn’t actually produce nearly as much West Texas Intermediate as it once did anyways. There are good reasons to worry, but also cases for optimism.” McGowan also touched on the temporary foreign worker program for the oilsands region, saying “This program was justified by both the business community and the federal government by saying there were labour shortages that couldn’t be met by Canadians. That’s clearly not the case in Fort McMurray anymore.” There are others who disagree though, and the temporary foreign worker program is still highly controversial for many Canadians.

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Economic Ft Mac Health

Free Medication Available for TFWs Thanks to Pharmacist

free medication, temporary foreign worker, Fort MacMurray pharmacist

Fort MacMurray pharmacist Osama Beniameen never hesitated to step up for one second after learning that a disabled TFW woman could not afford medication that she needed. The kindhearted pharmacist covered the bill himself, and provided free medication to the woman. Benjameen plies his trade at The Medicine Shoppe, and he covered an entire year of medication for Filipino temporary foreign worker Maria Victoria Venancio. In 2011 Venancio was in Edmonton riding a bike to work when she was in an accident that left her a quadriplegic who requires a wheelchair. Because she was not capable of working in this condition Venancio’s visa renewal was denied and she was in the country illegally. This meant that Maria did not qualify for health insurance under Canadian law.

As a temporary foreign worker with no visa Venancio can not afford her medical treatment. In addition to the free medication provided by the Fort MacMurray pharmacist Maria is also receiving uncompensated care from a local family doctor and a physiotherapist who have volunteered their services as well. As an immigrant from Egypt around a decade ago Benjameen said that he was moved when he found out that Venancio could not afford her medication and had no healthcare coverage. The Fort MacMurray pharmacist stated “As health care professionals, we should not look at how much before servicing somebody. We focus on changing lives, not on how much we charge and make. If you see someone needing help, give them a hand. This is my way of practice. When I serve a patient I want them to get well. She should not go home helpless. She has no capability for paying on her own but she is still part of the Canadian community.”

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Economic

Canadian economy rebuilding, though headwinds remain, says Governor Poloz

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Following a setback caused by the drop in oil prices, the Canadian economy is once again on a course toward sustainable balanced growth, although it continues to face headwinds, Bank of Canada Governor Stephen S. Poloz said today. The Governor’s speech to the Greater Charlottetown Area Chamber of Commerce outlined some key indicators the Bank is watching closely as the economy rebuilds following the Great Recession.

Overall, non-energy exports are performing well. According to the Bank’s Spring Business Outlook Survey, companies that are benefiting from stronger U.S. demand are starting to feel capacity pressures, which indicate they may soon need to increase investment. “Outside of the energy sector, the outlook for investment is positive,” Governor Poloz said.

The Bank is also watching trends in the creation of new companies in Canada. Many exporting companies were lost during the recession, but there are early signs of a recovery in firm creation, he noted.

The January interest rate cut has contributed to easier financial conditions in Canada. The Bank estimates that a household that has renewed a $100,000 mortgage would save about $250 in interest payments this year. A three-cent drop in the Canadian dollar would mean that companies with existing export contracts in U.S. dollars will receive an extra $15–20 billion in 2015.

Currently, the oil price shock continues to have a net negative impact on the economy. “While there’s still a risk that lower oil prices could have a greater impact, the signs we have seen to date lead us to believe that the impact of the shock is proving to be faster than we first expected, but not larger,” he said.

The Bank’s task of judging the underlying trend of inflation has been challenging over the past year because of the various shocks experienced by the economy. “Our current best judgment is that the underlying trend of inflation is somewhere around 1.6 per cent to 1.8 per cent,” said the Governor.

While the environment remains uncertain, the Bank’s latest projection shows the Canadian economy returning to full capacity around the end of 2016. “You can be sure that the Bank of Canada will continue to work toward bringing the economy home, at full capacity and with inflation sustainably on target, so we can fulfill our mandate to support the economic welfare of all Canadians,” the Governor concluded.

Source:: http://www.bankofcanada.ca/2015/05/canadian-economy-rebuilding-though-headwinds-remain-says-governor/

      

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Alberta Economic Ft Mac Health

Accusations Made by Brian Jean Against PC Opponents About Willow Square

Brian Jean, Willow Square

Brian Jean is making accusations against his PC opponents over Willow Square. Jean is accusing is opponents of hypocrisy over the project and they are pointing the finger right back at him. Two emails from 2012 show that both Don Scott and Mike Allen were against moving a long term care facility to Parson’s Creek when they were municipal councilors. On January 10, 2012 a statement from Mike Allen read “I am very disappointed to learn that the LTCC site was changed without consulting the seniors of this community or incorporating their views. I’ve heard that whether or not the facility is built at Willow Square, seniors believe it MUST (sic) be built in the lower townsite.” The same day Don Scott sent an email saying “I believe that the government of Alberta should suspend the decision to relocate the LTCC, which would permit a re-evaluation of the benefits associated with both sites through engagement with Fort McMurray’s seniors.”

Brian Jean is critical of his opponents when it comes to Willow Square, and one of the first policy announcements that Jean made during his campaign was to place a priority on senior care. Jean said “They knew the Parson’s Creek deal made no sense for Fort McMurray. They openly said so, before they became MLAs. Parson’s Creek is a classic case of these PC MLAs turning their backs on our community and not listening to constituents.” Mike Allen fought back, saying “We’ve learned a lot throughout the last three years. Long-term care should have started construction a year ago, but political reasons has led to a delay of that project. This is an important project for the delivery of health care to our seniors.” Mike Scott also countered the criticism and stated “When Brian Jean talks about Willow Square, he never mentions that he quit on this region and we spent $16 million buying the land. Premier Prentice made that purchase not even 100 days into his term.”