Canada’s central bank could raise interest rates in the coming months as rising global crude oil prices increase inflationary pressures. Economists believe the Bank of Canada’s chances of raising rates by December are growing, despite Canada’s annual inflation rate remaining steady at 3% last month. Economists at Desjardins Group and RSM Canada say it may be difficult for Bank of Canada officials to ignore oil prices above US$100 a barrel, particularly if the increase persists. While core inflation remains under control for now, economists warn that continued oil price shocks could push

Prime Minister Mark Carney has announced a major tax break for companies making new investments in Canada. Under the new measure, businesses will be able to immediately claim 100 per cent of the cost of eligible new investments, including machinery, equipment and technology, as a tax deduction. Announced Tuesday, the measure is being called the “Productivity Mega Deduction” and is aimed at encouraging businesses to invest more in their operations. The government says making investments cheaper will give companies greater incentive to spend on expanding and improving their businesses, helpi

Amid rising tensions in the Canada-U.S. trade war, Prime Minister Mark Carney called the United States a “friend” during his keynote address at an investment summit in Toronto. Carney said the two countries will always remain neighbours and that Canada will continue to be the United States’ most important partner in several key areas. He acknowledged that the two countries have had disagreements in the past, but said their relationship has remained close. According to Carney, the relationship works best when there is mutual trust and respect for each other’s traditions and sovereignty.

The Mark Carney government is expected to formally announce the next steps on Tuesday to open the door to private and foreign investment in four of Canada’s major airports. According to reports, the Liberal Party held a special caucus meeting Monday night to discuss private investment in the country’s airports. Sources say the government is expected to outline a process for allowing foreign or other private investors to acquire stakes in major airports, including Vancouver, Calgary, Toronto Pearson and Montréal-Trudeau. The airports are currently operated by not-for-profit airport authori

New U.S. tariffs of 50 per cent on 110 Canadian products took effect Tuesday, expanding the range of goods affected by the escalating trade dispute between Ottawa and Washington. The new duties apply to products including certain cheeses, all-terrain vehicles, motorboats, furniture, aluminum products, paper and wood products, iron and steel structures, mattresses and lamps. The changes were made under U.S. tariff measures announced by the Trump administration. At the same time, the United States removed 10 Canadian product categories from the 50 per cent tariff list. Those include salt, Portla

Canada and the European Union are set to deepen their diplomatic ties, with the European Parliament announcing the opening of a dedicated office in Ottawa ahead of Prime Minister Mark Carney’s visit to Europe. The move comes as Carney’s government seeks to strengthen trade and defence partnerships with the EU while reducing Canada’s reliance on the United States. European Parliament President Roberta Metsola said Monday that Europe and Canada share common views on several issues, including the rules-based international order. She said the new presence in Ottawa would help turn that partn

The Canada Border Services Agency (CBSA) says 111 foreign nationals have been removed from Canada in cases involving extortion and organized crime, with 188 removal orders issued as of Sept. 3. According to figures released by the agency, 58 people were removed from British Columbia, 30 from the Prairie region and 23 from the Greater Toronto Area. The CBSA has also released the names and photographs of individuals involved in four recent cases. They include Palwinder Singh, Jasmer Singh, Amritoj Bajwa and Sahibjot Singh. The agency said the cases involved allegations or criminal activity relat

U.S. President Donald Trump has suggested that a trade deal between the United States and Canada could be reached soon, despite the ongoing trade war between the two countries. Speaking to reporters in Ireland over the weekend, Trump said relations with Mexico were expected to be very good and that relations with Canada were also good. However, he accused Ottawa of discriminating against the United States for the past 50 years. Trump also repeated his claim that the U.S. does not need Canadian goods, arguing that Canada’s business depends heavily on trade with the United States. Formal negot

Canada’s annual inflation rate remained steady at 3 per cent in August, according to Statistics Canada. However, inflation could rise in September as Brent crude oil prices have surpassed US$100 a barrel, while the full impact of the 50 per cent tariffs imposed by U.S. President Donald Trump and Canada’s retaliatory measures could also be reflected in upcoming inflation data. According to the report released Monday, gasoline prices rose at a slower pace last month but remained elevated amid the ongoing conflict in Iran. On a positive note, grocery prices increased at a slower rate than ove