Hello,
Prime Minister Justin Trudeau acknowledged Wednesday that the Bank of Canada raising its key interest rate to the highest level in 22 years is bad news for Canadians.
“This is not the news that any Canadian wanted to receive this morning,” Mr. Trudeau said, speaking at the conclusion of a NATO Leaders’ Summit in Vilnius, Lithuania.
Mr. Trudeau was responding to news that the Bank of Canada has increased its benchmark interest rate to 5 per cent and pushed out the timeline for getting consumer prices under control. There’s a story here.
The Prime Minister said, based on his discussions with other leaders at the summit, that the cost of living is an issue in many countries, with record high inflation, and interest rates increasing.
“People around the world are facing significant challenges,” said Mr. Trudeau, noting that his government has stepped up with targeted support including a grocery rebate to 11 million Canadians, rebates for some Canadians to offset the costs linked to Ottawa’s price on carbon, and other programs, including a housing benefit.
“We will continue to be there for Canadians through these difficult times,” he said.
In Penticton, B.C., federal Conservative Leader Pierre Poilievre and leader of the official opposition, told a news conference that the debt on Canadian households is colliding with rapidly rising interest rates.
Mr. Poilievre said the rates were obviously set by the Bank of Canada, but that the federal Liberal government’s carbon tax and deficits are driving the inflation rate that forces the Bank of Canada to increase interest rates.
There’s an explainer here on how the Bank of Canada works. And there are updates here on the Bank’s decision.
This is the daily Politics Briefing newsletter, written by Ian Bailey. It is available exclusively to our digital subscribers. If you're reading this on the web, subscribers can sign up for the Politics newsletter and more than 20 others on our newsletter signup page. Have any feedback? Let us know what you think.
TODAY'S HEADLINES
Minister seeks mediator terms to end B.C. port strike - Labour Minister Seamus O’Regan has given a federal mediator 24 hours to send him recommended terms to end the British Columbia port strike that has snarled cargo in about 30 ports and spurred fears of supply chain chaos across Canada. Story here.
New security assurances for Ukraine unveiled at NATO summit - The United States and global allies unveiled new security assurances for Ukraine at a NATO summit on Wednesday, designed to bolster the country’s defences against Russia over the long haul while Kyiv strives for membership of the alliance. Story here.
Olivia Chow sworn in as Toronto mayor - Olivia Chow has officially taken office as Mayor of Toronto. The 66-year-old is the first person of colour to lead Canada’s most populous city and has pledged to build what she calls a more caring and affordable city. Story here. She is inheriting a city in dire straits. Story here.
Premiers seek additional health care support from federal government - Canada’s premiers reiterated calls for more federal help for health care, while acknowledging that provinces can learn from each other in areas such as worker retention. Story here.
Watchdog looking at Nike Canada products - A watchdog created by the federal government to probe corporate wrongdoing abroad says it is opening an investigation into whether Nike Canada is selling products made with Uyghur forced labour in China. Story here.
Archibald banned from AFN gathering - RoseAnne Archibald, who was deposed last month from her position as national chief of the Assembly of First Nations, was barred from the organization’s annual gathering after she delivered three separate speeches to the delegation denouncing the AFN’s leadership for her sudden dismissal. Story here.
Meta not backing down despite Ottawa pledge on regulations - Ottawa’s bid to bring tech giants Google and Meta onside through regulations to its Online News Act has failed to persuade Meta, which says it will press ahead with plans to block Canadians’ access to news on Facebook and Instagram. Story here.
Vancouver city councillor gives bad review to cream soda-flavoured vodka - The Vancouver city councilor who shotgunned an alcoholic drink on stage with the city’s mayor says he doesn’t regret it. But he does regret the drink was a can of cream soda-flavoured vodka. Story here from CBC.
THIS AND THAT
Today in the Commons – The House of Commons is now on a break until Sept. 18. The Senate resumes sitting on Sept. 19.
Deputy Prime Minister’s Day - Private meetings in Toronto.
Ministers on the road -Tourism Minister Randy Boissonnault, in Whistler, B.C., participated in a town hall hosted by Tourism Whistler and the Whistler Chamber of Commerce. Environment Minister Steven Guilbeault, in Brussels, is co-hosting the 7th Ministerial on Climate Action alongside the European Union and China. (Story here.) Public Services Minister Helena Jaczek, on behalf of Rural Economic Development Minister Gudie Hutchings, and with Ontario Legislative Affairs Minister Paul Calandra, make an announcement about improving high-speed internet access in rural Ontario. Public Safety Minister Marco Mendicino, in Calgary, announced the city will receive up to $7.7-million in federal funding to prevent gun crime and gang violence. Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario, in London, Ont., made an announcement in support of a pharmaceutical manufacturer in the city.
PRIME MINISTER'S DAY
Prime Minister Justin Trudeau, in Vilnius, Lithuania for the NATO Leaders’ Summit, attended a meeting of the North Atlantic Council, the principal decision-making body of NATO, and met with Ukraine President Volodymyr Zelenskyy, then Lithuanian President Gitanas Nausėda. Mr. Trudeau then attended a meeting of the NATO-Ukraine Council. Mr. Trudeau then held a media availability.
LEADERS
Conservative Leader Pierre Poilievre, in Penticton, B.C., held a news conference and, in the evening, held a meet-and-greet event with supporters.
NDP Leader Jagmeet Singh is off.
No schedules released for other party leaders.
THE DECIBEL
On Wednesday’s edition of The Globe and Mail podcast, Dr. Tara Gomes, lead investigator for the Ontario Drug Policy Research Network, appears to explain the numbers that have seen the opioid epidemic taking young lives – the number of 15-24 year olds dying from opioid overdoses tripled between 2014 and 2021 in Ontario. Dr. Gomes also talks about how the politics around safer supply programs are impacting the people affected by harm reduction. The Decibel is here.
TRIBUTE
Michel Dupuy - The former Canadian ambassador to the United Nations, and cabinet minister under Jean Chretien has died, aged 93. Story here from The Montreal Gazette.
OPINION
The Globe and Mail Editorial Board on nuclear power as a key part of a green future: “It’s an utterly predictable chain reaction. Any proposal to expand nuclear-generated electricity as part of the effort to reduce carbon emissions is met with instant condemnation from environmentalists who can’t see past their historical antipathy to atomic power. So it was last week in Ontario, when the Progressive Conservative government sensibly proposed further expansion of its nuclear-generation capacity, which already supplies about half of the province’s electricity.”
Campbell Clark (The Globe and Mail) on the federal ministers who can’t explain why they weren’t told: “It is mid-July now, but there are a couple of cabinet ministers who have owed us explanations for months. Both Bill Blair and Marco Mendicino haven’t adequately answered a question about why they didn’t know something important. Government officials tried to tell them, and somehow, neither was told. But now the bigger issue is that there are no explanations.”
Andrew Coyne (The Globe and Mail) on how NATO’s failure to accept Ukraine is an insult to a country that has more than proven itself: “It is Ukraine’s sweat and Ukraine’s blood that has stopped the Russian army in its tracks – that has, by some estimates, cut its fighting force in half – and when this war ends and the next has begun it will be Ukraine that will have to do most of the work of stopping Russia again, with or without NATO. So it is just a little bit precious for NATO, or more particularly for Germany and the United States, to tell Ukraine, in the language of this week’s NATO summit communiqué, that it may be invited to join them at some indeterminate point in future “when Allies agree and conditions are met” – a commitment so watery, so condescending, that Ukraine could be forgiven for saying to hell with it, we’d rather fight the Russians on our own: anything not to have to endure such insults from our so-called allies.”
Irwin Cotler and Noah Lew (Contributed to The Globe and Mail) on Beijing extending its draconian laws beyond its borders: “This extraterritorial application of the National Security Law is a stark example of the growing phenomenon of transnational repression, which describes authoritarian states’ exportation of their oppressive practices and policies beyond their own borders. Transnational repression poses a grave threat to Canadians, and we have urged the federal government to take numerous steps to address the issue. This latest attempt by the government of Hong Kong to silence, intimidate and deter leading dissidents abroad requires a strong, just, and timely response.”
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Ian Bailey