Bank of Canada Slashes Interest Rates Amid Economic Uncertainty, Trump’s Tariff Threat Sparks Panic Among Canadian Governments, Quebec Pushes for Newcomers to Embrace ‘Quebec Values’

January 29, 2025 00:51:03
Bank of Canada Slashes Interest Rates Amid Economic Uncertainty, Trump’s Tariff Threat Sparks Panic Among Canadian Governments, Quebec Pushes for Newcomers to Embrace ‘Quebec Values’
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Bank of Canada Slashes Interest Rates Amid Economic Uncertainty, Trump’s Tariff Threat Sparks Panic Among Canadian Governments, Quebec Pushes for Newcomers to Embrace ‘Quebec Values’

Jan 29 2025 | 00:51:03

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Show Notes

In today’s episode, we discuss the Bank of Canada's surprising interest rate cut and its impact on inflation, mortgages, and consumer spending. Meanwhile, Trump’s renewed tariff threats send shockwaves through Canadian governments, forcing emergency economic strategies. In Quebec, a new push for immigrants to adopt ‘Quebec values’ stirs controversy. Stay tuned for expert insights and analysis.

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Episode Transcript

[00:00:02] Speaker A: And now News Takeaway. [00:00:16] Speaker B: Connect FM 91.5 News Takeaway segment Good morning Vijayji Good. [00:00:26] Speaker A: Morning Connect Nal Connect Good morning. [00:00:45] Speaker B: Jobs positively impact Specifically bank of Canada overnight lending rate Line of credits floating variable mortgage is the rate basically interest rate Monetary policy report Economic growth Economic activity factor in Nahi Kita Gyai. [00:02:11] Speaker A: Balance sheet so March asset purchases Bond buybacks modestly Quantitative tightening so bond buyback. [00:02:27] Speaker B: Bank of Canada bonds the banks liquidity inject so. [00:02:33] Speaker A: Basically quantitative tightening the purpose tightening to drain excess liquidity in the market Quantitative tightening Asset purchases bond purchases Asi modestly restart Karniyani so Tori Thori Liquidity inject Karnishuru Karniya economic growth. [00:03:21] Speaker B: Bank of Canada bank of Canada. [00:03:37] Speaker A: Yeah so they're not calling it quantitative easing Quantitative tightening normalization Right. [00:04:02] Speaker B: Policy landscape prediction Monetary policy the baseline forecaster which tariffs know factor in global economy upwards consumption stronger domestic consumption. [00:04:40] Speaker A: Even more than the previous projection the euro area growth subdued China policy actions Demand boost Near term growth prospects Canadian dollar depreciated materially against the US Dollar Trade uncertainty Overall we can broader strengthening of US Dollar Canadian dollar vis a vis US Dollar Coffee materially weak Hoya oil prices October Monetary policy report Barrel economy to boost the economy they have started to boost the economy Consumption the housing side so consumption demand housing activity. [00:05:53] Speaker B: Business investment still remains weak Business investment either the threat goes away completely in its entirety Businesses already orders raw material purchases investments mergers and acquisitions so. [00:06:49] Speaker A: Export outlook Trans Mountain pipeline the expansion export capacity. [00:07:01] Speaker B: This just begs the question Resources Canada which again properly transport pipelines. [00:07:24] Speaker A: The labor market remains soft unemployment December which 8 point job growth in the recent months the wage pressures they're easing GDP growth It will strengthen projection See October GDP growth Main reason in a baseline projections Immigration targets revise kite population growth Immigration targets revise. [00:08:22] Speaker B: Domestically consumption Immigration targets. [00:08:33] Speaker A: So Pichle Sal 1.3% growth 1.8% growth October which a projection 2.1% so 8.8% growth October projection 0.10% so Kasi downward. [00:08:55] Speaker B: Revision and again. [00:09:04] Speaker A: Baseline projection projection 25% GDP percent KI bank area so GDP tariffs GDP percent KI overall GDP not the GDP growth rate so GDP which do so tariffs the second year bank yes so bank projection this is a hypothetical scenario that we are sharing so inflation so inflation still it will remain around 2% for the next two years volatility because of the GST break. [00:10:19] Speaker B: I believe 1.7 or 1.1.8 C 1.8% artificially inflation. [00:10:34] Speaker A: The inflation tariff threats if you exclude them if you Ignore them for the time being Inflation economy excess supply Governing council and decide policy rate which 25 basis points the cumulative reduction since last June Lower interest rates they are boosting household spending and in the outlook published today, the economy is expected to strengthen gradually and inflation is expected to stay close to target however, if broad based and significant tariffs are imposed Canadian economy the resilience it will be tested in our developments Both closely follow Karangay Donald Trump Tariff economic activity Inflation monetary policy. [00:12:04] Speaker B: Virtually stubborn inflation bank of Canada Jeddah Spread difference between the Canadian key rate and the US Key lending rate impact Canadian dollar Canadian dollar value inflation bank of Canada. [00:13:19] Speaker A: Press conference Right Weakening output they hire inflation so can they owe Eco tool monetary policy actions GDP growth rate GDP per capita basis the Sadi economy shrink GDP per capita Canada. [00:14:01] Speaker B: Private sector investment capital within the country invest honey private capital already billion dollars Canada which private company cheap labor available capital gains tax inclusion rate the leather capital gains Provincial Premiers Indian team Australia so Kalunani Kigalakiya. [00:15:30] Speaker A: Ugly interest rate Announcement of Bara Marchnua right the money markets as of today Donald Trump nobody knows but as of today 50% chance 25 points the cut. [00:15:53] Speaker B: Correct yes yes yes Donald Trump within a few hours illegal migrants impact Marshtakarna can the economic relief. [00:17:39] Speaker A: Package Opposition leaders. [00:18:15] Speaker B: Any support to the businesses had to be tied with the. [00:18:18] Speaker A: Workers. [00:18:36] Speaker B: Opposition party Commission the report recommendations Canadian electoral system. [00:19:03] Speaker A: Yeah Stimulus package Businesses no support Sorry Workers no support Currently Conservatives the deputy leader name Melissa Lanceman Donald Trump the tariff threat response package the load heavy that Donald Trump announcement Donald Trump stimulus package. [00:20:52] Speaker B: Conversation Spokesperson multiple times Federal Cabinet stimulus package segment which around SA time. [00:21:40] Speaker A: Opposition leader right so opposition leaders. [00:22:27] Speaker B: Speaking of press conferences Garlic Media availability Premier DVD British Columbia the economy we got into a mess and then hypothetically Speaking God forbid 8 out of 10 business leaders agree dollar for dollar tariff lagalo it has to be through the diplomatic channels. [00:23:53] Speaker A: Foreign interference the inquiry the report. [00:24:01] Speaker B: Online Misinformation disinformation. [00:24:06] Speaker A: Foreign interference the tracking misinformation the tracking modeling Sadi projection interim assessment Sanji kitisi Finance Department 0.6% 0.6% in 2025 and 0.6% further in 2026 Joe 2008 financial crisis those are Satvich 10% growth etc those are Norwegians though point 10% contract etc so over contraction 2.3% DC 0.6% contraction financial crisis so it doesn't add up it's all very hypothetical so we'll cut him some slack there Correct right Tax billions of dollars revenue Katah meeting. [00:26:38] Speaker B: Domestic consumption Canada resource rich country California the GDP California technology company but besides the point Canada domestic consumption capacity within the provinces. [00:27:12] Speaker A: Hold your thought, hold your thoughts. Interprovincial trade barriers Correct. [00:27:39] Speaker B: Donald Trump Resource development seriously projects internal circle but at least feel good policies. [00:28:07] Speaker A: Thank you. [00:28:12] Speaker B: In Canada dollar for dollar counter terrorists Canadian export based country domestically consume Karak it's almost like saying restaurant production but domestic demand. [00:29:30] Speaker A: We need to diversify our trade. Correct. [00:29:46] Speaker B: Interprovincial trade barrier. Interprovincial trade barrier Domestic liquor Alberta breweries transportation industry British Columbia in fact weight limits trade barriers Movement of labor licensed professional regulatory loophole. [00:30:51] Speaker A: Yeah. So mobility of labor. Yeah. So basically provinces protect Kardeni protectionism the policy Beer sector protect Karia Wine industry protect Karia So protectionism the policy Free trade. [00:31:18] Speaker B: Taxation policies uniform taxation policy to boost interprovincial trade. [00:32:11] Speaker A: So let's see what happens Daniel Smith. [00:32:13] Speaker B: Scott Moore Jaffirwin election. [00:32:27] Speaker A: Millions and billions of dollars will need to be injected into the economy. So supports. [00:32:46] Speaker B: At least so that things can be done faster and more efficiently. But needless to say, economic situation. [00:33:56] Speaker A: Multiple times Ontario Provincial Parliament Progressive Conservatives Book of world records. [00:34:46] Speaker B: Correct. [00:35:42] Speaker A: British Columbia but overall Canada which Donald Trump. [00:36:30] Speaker B: Social contract French language commissioner Immigrants Immigrants less of a Quebec identify Karden yeah. [00:37:17] Speaker A: So basically Immigration minister the French language minister we want a single one society Immigrants ethnic minority identify Kardeniya Kung bar Nikoland Sade functions events Sadia movies Men and women are equal in Quebec they can live to anu O cheese except so basically Vijay Canada Quebec interculturalism But Josada Francophone culture that's prime respect Karna Pana. [00:38:37] Speaker B: Multicultural society to define Canadian culture. [00:39:03] Speaker A: Very uniform civil code. [00:39:06] Speaker B: Yeah. Yes. [00:39:13] Speaker A: Legal backing Tomorrow then we will have legal backing to enforce it. Enforce interculturalism. [00:39:24] Speaker B: Yeah. Supreme Court notwithstanding clause invoke car case Bill no. 2019 court processes all of a sudden. [00:40:27] Speaker A: Yeah. Quebec. Yeah. Common Quebec values Common culture Donald Trump Common Canadian culture. What is it to be a Canadian. [00:40:55] Speaker B: Justin Trudeau Post national state. [00:41:23] Speaker A: Supply chains Nationalism became popular. Yeah. National fervor nationalism so nationalism is popular once again. [00:42:02] Speaker B: So on either side of the spectrum Post national state. Post national state Ultimately it does morph into all those things Unless legislations. [00:43:25] Speaker A: Yeah. We saw COVID 19 Liberal Party eccentrist confidence in supply agreement but we badly need a centrist party in Canada. [00:44:10] Speaker B: Yes. Financial crisis. Oh. Bank of Canada Conservatives finance ministers financially policies like TFSA tax free savings account financial crisis overall stock market workforce pension retirement age 65 Ode Karkesade workers the shortage Immigration, immigration the Ki Asarhaya so Obilkur Saiga Laki Centrist Jali Sarkar Kui Durandra that's not the way to do things. [00:46:00] Speaker A: Conservative stripe Conservative Sarkara Liberal Party the leadership raised Mark Carney so Liberal party the leader by default Hagen Economist Economy Attractive alternative long term vision so did I eat combination? Did I economist? You're right so I'm not endorsing Markad these are early days and we are. [00:47:27] Speaker B: Not endorsing conservatives we're just trying to bring all those elements into the conversation. [00:47:35] Speaker A: We'Re just talking about the political spectrum right now. [00:47:59] Speaker B: Canada's dental plan Universal Health Care 1970s. [00:48:32] Speaker A: Became the first province yes. [00:48:36] Speaker B: Right. [00:48:49] Speaker A: Balance is very important. [00:48:56] Speaker B: Correct how is that sustainable? [00:49:15] Speaker A: How is that sustainable? So as the head of the family, as the head of the nation instead of social services. [00:49:43] Speaker B: Trickle down economics Believe businesses. [00:49:53] Speaker A: Conservative leader Kanuaki Balanced Galkada Business Responsible economy Social services Correct. It's not about a political party it's about the policy it's about political spectrum. [00:50:16] Speaker B: And long term vision Canadian politics global reputation the two in three Canadians believe so Pichle Ikasal Devich Canada the reputation Ponchahe so Horvi survey Kandavichuri thank you. [00:51:02] Speaker A: Thank you Vijay.

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