Bank of Canada to make interest rate decision as tariff uncertainty persists
The Bank of Canada is set to make an interest rate decision today as the United States' trade dispute continues to cloud the economic outlook.
A poll of economists provided by LSEG Data & Analytics ahead of the decision shows they expect the central bank will leave its policy rate unchanged at 2.75 per cent.
The central bank decided to hold its key rate steady at its last meeting in April, saying at the time that it needed more clarity on how the Canada-US trade dispute would impact the economy.
Statistics Canada said Friday that real gross domestic product topped expectations in the first quarter of the year as businesses rushed to get ahead of the tariff impact.
The Bank of Canada said in April it would be less forward-looking for the time being and did not publish a central forecast for inflation and economic growth amid the considerable uncertainty.
Annual inflation cooled to 1.7 per cent in April, dragged down by the removal of the consumer carbon price even as underlying inflationary pressures ticked higher.
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CBC
39 minutes ago
- CBC
Holland College questions fairness of province giving $2M grant only to UPEI
Social Sharing The president of Holland College is not happy that the P.E.I. government stepped in with a $2-million grant to the University of Prince Edward Island to cope with the loss of revenue from international tuition fees, but Holland College got nothing. "It doesn't seem fair... I support closely what the administration of UPEI is doing and I think that they are doing some cool things after a very difficult period of time, but no, it doesn't seem fair," said college president and CEO Sandy MacDonald. "I guess I'm qualifying my answer because I'm hoping the province will take the opportunity in the next fiscal year to balance things out, so I'm hoping it will be made fair." MacDonald has estimated that the international student population at the college will plummet by 85 per cent over the next two years as federal changes to student permits kick in, designed in part to relieve a nationwide housing crunch. From a high of 800 international students, Holland College enrolment is projected to fall to 140 students by September 2026. That means a huge drop in revenue, leading the college to phase out eight programs and lay off 25 staff. Three kilometres away from Holland College's main campus in Charlottetown, at the University of Prince Edward Island, officials have raised tuition fees and made some cuts. But they also received a one-time grant of $2 million from the Department of Workforce, Advanced Learning and Population to help offset the loss of international tuition fees, estimated at $3 million this year. It was included in UPEI's 2025-2026 budget as a line item called International Enrolment Reduction Support. UPEI's vice-president of administration and finance, Tim Walker, said it will be used for things like recruitment and retention, enrolment planning, and a hunt for new revenue streams. "This important support gives UPEI the opportunity to consider more options and take action during this fiscal year, ensuring we have a stronger foundation for the next budget planning cycle (2026-27)," Walker said in an email to CBC News. MacDonald said getting a similar $2 million would have made a huge difference to Holland College. "We have been underfunded for many years," he said. "We've made the argument many times. It goes back all the way to the auditor general's report from 1999; Wayne Murphy said at the time we had a structural deficit." Why the upfront cost is multiplying for international students on the Island 1 year ago Duration 3:59 Both UPEI and Holland College are increasing tuition deposits for international students. Lornie Hughes, the registrar at Holland College, explains why. Expected funding did not come in He said in 2023, the college and the province made a deal that would provide extra money over the next three fiscal years to help the college catch up with its deficit. Then it would go back to a lower funding level. The first year, Holland College did get a 9.5 per cent increase and $3 million more for its capital budget. This year, it was expecting the same. "We did not get that. We got a 6.5 per cent increase and half of the $3 million in capital," MacDonald said. "We were disappointed, but we understood the province is under financial constraints, so we had to accept that." Would the $2 million have made a difference in terms of those decisions? Of course it would. — Sandy MacDonald Then came the realization that UPEI had asked for — and gotten — the $2 million grant. "We've suspended eight programs, we've cut portions of three other programs," MacDonald said. "Those were the results of the deficit that we faced this fiscal year. So would the $2 million have made a difference in terms of those decisions? Of course it would." As for the future, MacDonald said the college will ask for — and hopefully get — some International Enrolment Reduction Support funding of its own for 2026-2027. "Certainly we will have a significant deficit again this year," he said. "I've spoken to the province since the budget come down and they've said, 'We're willing to work with you.' "So if UPEI was getting a one-time grant for this issue this year, certainly we would be hoping to get something similar for next year." Cuts at Holland College will affect all union members, UPSE president says afterweekend meeting 2 months ago Duration 2:16 The news came late Friday: Holland College said it would freeze some programs and downsize others because caps on international students have led to the P.E.I. college is taking in less money. Over the weekend, the president of the college met with union officials like Karen Jackson of UPSE (shown) to discuss what happens next, especially with the 35 jobs that will be affected. CBC's Stacey Janzer reports. Province's response CBC News reached out to the provincial government about the grant to UPEI and MacDonald's concerns. "Holland College did not receive funding in the 2025-26 academic year for an international enrolment reduction support grant," a spokesperson replied by email. "The province is working closely with post-secondary institutions to help address overall enrolment challenges and the impact of international student reductions... "All funding requests submitted to the province undergo a thorough review and consideration process. Holland College did receive a 6.5 per cent increase in its core operating funding for the 2025-26 academic year to help address operational needs.
Globe and Mail
an hour ago
- Globe and Mail
Canada invites Saudi Crown Prince to G7 summit
Canada has invited Saudi Arabian Crown Prince Mohammed bin Salman to the Group of Seven summit in Alberta this month, an extension of hospitality to a kingdom Ottawa once shunned after the 2018 murder of a dissident journalist who criticized its rulers. A source with knowledge of the matter confirmed the invitation and said there had been no response so far on whether Mr. bin Salman will attend the June 15-17 meeting in Kananaskis. The Globe and Mail is not identifying the source, as they were not authorized to speak publicly on the matter. Mr. bin Salman is not the only leader Canada is inviting in spite of a strained bilateral relationship. Prime Minister Mark Carney is welcoming Indian Prime Minister Narendra Modi even though Ottawa has publicly accused his government of playing a role in the 2023 murder of a Canadian citizen, Hardeep Singh Nijjar. The G7 summit is being held just outside Calgary. Here's who will be there and what these meetings achieve Saudi Arabia and India are not members of the G7 but hosts of gatherings of this annual political and economic forum for top industrialized countries often invite other national leaders to join. Mexican President Claudia Sheinbaum is also attending the summit in Alberta, as is Ukrainian President Volodymyr Zelensky. In 2018, Ottawa followed the United States in imposing sanctions on 17 Saudis for the slaying of dissident journalist Jamal Khashoggi. He was murdered in the kingdom's Istanbul consulate in October of that year when he entered to procure documents certifying a divorce. U.S. media, including the Washington Post, later reported that the CIA believes the Crown Prince ordered Mr. Khashoggi's killing – contradicting Riyadh's assertion that he was not involved in the murder. Canada's sanctions remain in place today. Canada and Saudi Arabia also suffered a major diplomatic rift for nearly five years starting in 2018 when Riyadh expelled Canada's ambassador after the department of Global Affairs and Chrystia Freeland, who was minister of foreign affairs at the time, publicly called for the immediate release of several imprisoned political activists in the kingdom. Riyadh also recalled its envoy, decrying what it said was 'blatant interference' in its internal affairs, and it froze new trade and investment with Canada. The Saudi embassy in Ottawa did not immediately return a request for comment on the invitation.
Globe and Mail
an hour ago
- Globe and Mail
Industry Minister Joly sees role for automakers in boosting Canada's defence capacity
Canada's auto-making sector can play a key role in the federal government's $9.3-billion plan to bolster the country's defence, Industry Minister Mélanie Joly says. Prime Minister Mark Carney said Monday that Canada would fulfill its NATO commitment of spending 2 per cent of gross domestic product on its military in this fiscal year. Ms. Joly, speaking at an automotive industry conference Tuesday, said the sector, battered by U.S. tariffs, could use its manufacturing muscle to help Canada reach its defence goals. 'We are in a wartime cabinet right now,' Ms. Joly told reporters at the Automotive Parts Manufacturers' Association's annual meeting. 'We must build our defence capacity.' Ms. Joly did not provide specifics but said she will have talks with various industries, including autos, steel, aluminum and artificial intelligence. She pointed to General Motors' Oshawa operations, which have made military vehicles based on existing truck platforms. 'We know the Canadian Armed Forces need more vehicles and need to be protected better,' she said. 'We will build through our defence investments. That means more than $9-billion, and that includes investment in our industrial defence capacity, and that in turn could help the auto sector.' Carney lays out defence boost, says era of U.S. dominance over Flavio Volpe, president of APMA, said defence spending is welcome but is no substitute for the passenger-vehicle manufacturing that has sustained the domestic sector for more than 100 years. Military manufacturing involves different engineering tolerances, regulations and markets, he said. 'Good that we are thinking about it. I think we need to be creative and figure out how we feed into that, but it's not a replacement,' Mr. Volpe said. The day-long conference gave industry representatives an opportunity to hear from political and business leaders amid a tariff war with the United States that has already cost thousands of jobs and threatened the Canadian auto sector. U.S. President Donald Trump has imposed 25-per-cent tariffs on the non-U.S. content in Canadian- and Mexican-made cars. Canadian auto parts have been spared the tariff applied to Canadian-assembled cars. Rob Wildeboer, executive chair of parts maker Martinrea International Inc., told the conference how he helped Trump advisers at the White House understand that duties on parts would quickly shut down the industry across North America, as suppliers would refuse to make money-losing components. It was a message they were not hearing from the U.S. industry for fear of reprisals, Mr. Wildeboer said. Still, the suppliers rely on Ontario's assembly plants for about half their sales. 'We got the tariffs off parts. We got to do it on cars,' Mr. Volpe said. Industry Minister Joly signals action on steel dumping into Canada coming The trade tensions come amid falling North American car sales and production, said Joe McCabe of AutoForecast Solutions, a Pennsylvania-based consultancy. Even before the tariff war, Ontario's auto plants owned by the Detroit Three faced uncertain futures: idled and awaiting new vehicles, making niche-market minivans and muscle cars, or operating under capacity. The tariffs have amplified those risks, Mr. McCabe said in an interview on the sidelines of the conference. Ontario's plants have been hit by layoffs and production cuts this year as automakers delay new models and extend the life of existing ones, trying to buy time while gauging the tariffs' effect on production and sales. For parts makers and their customers, this has meant a freeze in new investments, illustrated by Honda Canada's recent move to postpone its $15-billion EV project in Ontario. 'There's no question there is a chill,' said Vic Fedeli, Ontario's Minister of Economic Development. Mr. McCabe said automakers will pass on the tariffs to buyers of luxury models, eat them at the low end and share the cost with consumers on mid-priced autos. Victor Dodig, CEO of Canadian Imperial Bank of Commerce, said the tariffs have put Canada in a 'war-footing' economic state that will mean uncertainty for 10 or 15 years. He said Canada will get through the tough times, but faces a changed world. 'It's not going to be like it was before,' he said. 'It's going to be different.' Still, he said, the U.S. will remain Canada's largest trading partner, likely forever.
