Business
Here’s what another Bank of Canada rate hike means for Canadians

By Tara Deschamps in Toronto
The Bank of Canada hiked its key interest rate by a quarter of a percentage point Wednesday, bringing it to 4.5 per cent — the highest it’s been since 2007.
The increase marks the eighth consecutive rate hike since the central bank began raising from near-zero in March.
The Bank of Canada said Wednesday that it expects this to be the last rate hike of the cycle.
The rate hikes are intended to reduce stubbornly high inflation, which peaked over the summer and has been steadily declining since, but many economists feel the shock to the economy could lead to a recession.
Here’s a look at what the rate means, how analysts are interpreting it and what it could mean for consumers.
What is the key policy rate and what does it do?
The key policy rate, also known as the target for the overnight rate, is how much interest the Bank of Canada wants commercial banks to charge when lending each other money overnight to settle daily balances.
Knowing how much it costs to lend money, or to deposit it with the central bank, helps set the interest rates charged on things like loans and mortgages.
Lowering the rate generally makes borrowing money more affordable, while raising it makes such activities more expensive.
Why is the bank using the rate to target inflation?
Inflation is a measure of how much the prices of goods and services are rising or falling. High inflation is a sign of an economy that’s overheating.
Canada’s annual inflation rate reached a peak of 8.1 per cent in June, the highest level in four decades.
It has eased since then, reaching 6.8 per cent in November and 6.3 per cent in December. And shoppers have seen even higher price increases for common expenses like groceries. Grocery prices have been rising at the fastest pace in decades and were 11 per cent higher in December than they were a year ago.
Economists and the central bank want to see a further easing of inflation, which is why interest rates have been rising so quickly in the hope of cooling consumer spending patterns.
“Inflation is still too high and short-term inflation expectations remain elevated,” the bank said in its most recent announcement. “The longer that consumers and businesses expect inflation to be above the target, the greater the risk that elevated inflation becomes entrenched.”
What does this mean for my mortgage?
Mortgage rates tend to increase or decrease in tandem with interest rates.
When Canadians buy homes there are two kinds of mortgages they can select — fixed rate or variable. Fixed-rate mortgages allow borrowers to lock in the interest rate they will pay for a set amount of time, while variable-rate mortgages can fluctuate.
After the Bank of Canada’s rate hike on Wednesday, prime rates can be expected to rise to 6.7 per cent and variable rates will be set at about 5.75 per cent and above, said Leah Zlatkin, a mortgage broker with LowestRates.ca.
Assuming their mortgage has a 25-year amortization and they had a 15 per cent down payment, she said a homeowner with a variable mortgage rate of 5.45 per cent on a home priced at $700,000 will have a monthly mortgage payment of around $3,716.
The same mortgage at 5.7 per cent will see monthly mortgage payments increase to about $3,805, a $89 jump per month, she added.
“This will put greater pressure on an already struggling housing market,” Zlatkin said in a news release.
“For homeowners in Ontario who are seeing increased property taxes in addition to rate hikes, it’s likely this will be the worst squeeze homeowners have felt yet.”
This report by The Canadian Press was first published Jan. 25, 2022.
Business
NewsAlert: Two-thirds of people with disabilities find barriers on planes, trains: AG
OTTAWA — The federal auditor general says two-thirds of people with disabilities encountered barriers on federally regulated planes and trains in 2019 and 2020, and is highlighting a lack of consultation and enforcement by agencies involved.
More coming.
The Canadian Press
Business
Key takeaways from APās report on China’s influence in Utah

In a letter photographed Feb. 13, 2022, Utah professor Taowen Le sent a letter to Utah Gov. Spencer Cox in 2022 urging him to meet with a Chinese ambassador. Le is among China’s most vocal advocates in the state. An investigation found that China’s global influence campaign has been surprisingly robust and successful in Utah. (AP Photo/Jon Elswick)
By Alan Suderman And Sam Metz in Salt Lake City
SALT LAKE CITY (AP) — China’s global influence campaign has been surprisingly robust and successful in Utah, an investigation by The Associated Press has found.
The world’s most powerful communist country and its U.S.-based advocates have spent years building relationships with Utah officials.
Legislators in the deeply conservative and religious state have responded by delaying legislation Beijing didn’t like, nixing resolutions that conveyed displeasure with China’s actions and expressing support in ways that enhanced the Chinese government’s image.
The AP’s investigation relied on dozens of interviews with key players and the review of hundreds of pages of records, text messages and emails obtained through public records’ requests.
Beijing’s success in Utah shows “how pervasive and persistent China has been in trying to influence America,” said Frank Montoya Jr., a retired FBI counterintelligence agent who lives in Utah.
“Utah is an important foothold,” he said. “If the Chinese can succeed in Salt Lake City, they can also make it in New York and elsewhere.”
Here are some key takeaways:
LEGISLATIVE AND PR VICTORIES
The AP review found that China and its advocates won frequent legislative and public relations victories in Utah.
Utah lawmakers recorded videos of themselves expressing words of encouragement for the citizens of Shanghai in early 2020, which experts said likely helped the Chinese Communist Party with its messaging.
The request came from a Chinese official as the government was scrambling to tamp down public fury at communist authorities for reprimanding a young doctor, who later died, over his warnings about the dangers posed by COVID-19.
Around the same time, Utah officials were thrilled when China’s authoritarian leader Xi Jinping sent a letter to fourth grade students in Utah. A Republican legislator said on the state Senate floor that he “couldn’t help but think how amazing it was” that Xi would take the time to write such a “remarkable” letter. Another GOP senator gushed on his conservative radio show that Xi’s letter “was so kind and so personal.”
The letter was heavily covered in Chinese state media, which quoted Utah students calling Xi a kind “grandpa” — a familiar trope in Chinese propaganda.
State lawmakers have frequently visited China, where they are often quoted in state-owned media in ways that support Beijing’s agenda.
“Utah is not like Washington D.C.,” then-Utah House Speaker Greg Hughes, a vocal supporter of former President Donald Trump, told the Chinese state media outlet in 2018 as the former president ratcheted up pressure on China over trade. “Utah is a friend of China, an old friend with a long history.”
FBI SCRUTINY
Utah Republican Sen. Jake Anderegg told the AP he was interviewed by the FBI after introducing a 2020 resolution expressing solidarity with China in the early days of the coronavirus pandemic. It won nearly unanimous approval. A similar resolution, proposed by a Chinese diplomat, was publicly rejected by Wisconsin’s Senate.
Anderegg said the language was provided to him by Dan Stephenson, the son of a former state senator and employee of a China-based consulting firm.
Stephenson and another Utah resident, Taowen Le, are among China’s most vocal advocates in Utah.
Both men have supported and sought to block resolutions, set up meetings between Utah lawmakers and Chinese officials, accompanied legislators on trips to China and provided advice on the best way to cultivate favor with Beijing, according to emails and interviews. Both have ties to what experts say are front groups for Beijing.
After embassy officials tried unsuccessfully last year to get staff for Utah Gov. Spencer Cox to schedule a get-together with China’s ambassador to the U.S., Le sent the governor a personal plea to take such a meeting.
“I still remember and cherish what you told me at the New Year Party held at your home,” Le wrote in a letter adorned with pictures of him and Cox posing together. “You told me that you trusted me to be a good messenger and friendship builder between Utah and China.”
Both men said their advocacy on China-related issues were self directed and not at the Chinese government’s behest. Le told AP he has been interviewed twice over the years by the FBI.
The FBI declined to comment.
TAILORED APPROACH
Security experts say that China’s campaign is widespread and tailored to local communities. In Utah, the AP found, Beijing and pro-China advocates appealed to lawmakers’ affiliations with The Church of Jesus Christ of Latter-Day Saints, better known as the Mormon church, which is the state’s dominant religion and one that has long dreamed of expanding in China.
Le, who converted to the church decades ago, has quoted scripture from the Bible and the Book of Mormon in his emails and letters to lawmakers, and sprinkled in positive comments that Russell Nelson, the church’s president-prophet, has made about China.
PART OF BROADER TREND
Beijing’s success in Utah is part of a broader trend of targeting “sub-national” governments, like states and cities, experts say.
It is not unusual for countries, including the U.S., to engage in local diplomacy. U.S. officials and security experts have stressed that many Chinese language and cultural exchanges have no hidden agendas. However, they said, few nations have so aggressively courted local leaders across the globe in ways that raise national security concerns.
In its annual threat assessment released earlier this month, the U.S. intelligence community reported that China is “redoubling” its local influence campaign in the face of stiffening resistance at the national level. Beijing believes, the report said, that “local officials are more pliable than their federal counterparts.”
Authorities in other countries, including Australia, Canada and the United Kingdom, have sounded similar alarms.
A spokesman for the Chinese embassy in Washington told the AP that China “values its relationship with Utah” and any “words and deeds that stigmatize and smear these sub-national exchanges are driven by ulterior political purposes.”
___
Suderman reported from Washington. AP writer Fu Ting in Washington contributed to this story.
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