Bank of Canada Reduces Policy Rate By 50 Basis Points to 3¾ Per Cent

The Bank of Canada has reduced its target for the overnight rate to 3¾ per cent, with the Bank Rate at 4 per cent and the deposit rate at 3¾ per cent, announced on Wednesday morning.

Tiff Macklem, Govenor, Bank of Canada. Screenshot.

The Bank expects the global economy to expand at about 3 per cent over the next two years. Growth in the United States is now expected to be stronger than previously forecasted, while China's outlook remains subdued according to a press release. It continues to state that growth in the euro area has been soft but should recover modestly next year. Inflation in advanced economies has declined in recent months and is now around central bank targets. Global financial conditions have eased since July, partly because of market expectations of lower policy interest rates. Global oil prices are about $10 lower than assumed in the July Monetary Policy Report (MPR).

In Canada, the economy grew at around 2 per cent in the first half of the year and we expect growth of 1¾ per cent in the second half. Consumption has continued to grow but is declining on a per-person basis. The opening of the Trans Mountain Expansion pipeline has boosted exports according to the Bank of Canada. The labour market remains soft—the unemployment rate was at 6.5 per cent in September. Population growth has continued to expand the labour force while hiring has been modest. This has particularly affected young people and newcomers to Canada. Wage growth remains elevated relative to productivity growth. Overall, the economy continues to have an excess supply.

GDP growth is forecast to strengthen gradually over the projection horizon, supported by lower interest rates. This forecast primarily reflects the net effect of a gradual pick-up in consumer spending per person and slower population growth. Residential investment growth is also projected to rise as the strong demand for housing lifts sales and increases spending on renovations. Business investment is expected to strengthen as demand picks up, and exports should remain strong, supported by robust demand from the United States.

The Bank forecasts GDP growth of 1.2 per cent in 2024, 2.1 per cent in 2025, and 2.3 per cent in 2026.

CPI inflation has declined significantly from 2.7 per cent in June to 1.6 per cent in September. Inflation in shelter costs remains elevated but has begun to ease. Excess supply elsewhere in the economy has reduced inflation in many goods and services prices. The drop in global oil prices has led to lower gasoline prices. These factors have all combined to bring inflation down. The Bank’s preferred measures of core inflation are now below 2½ per cent. With inflationary pressures no longer broad-based, business and consumer inflation expectations have largely normalized.

Bank of Canada expects inflation to remain close to the target over the projection horizon, with the upward and downward pressures on inflation roughly balancing out. The upward pressure from shelter and other services gradually diminishes, and the downward pressure on inflation recedes as excess supply in the economy is absorbed.

With inflation now around the 2 per cent target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1 per cent to 3 per cent range. If the economy evolves broadly in line with our latest forecast, we expect to reduce the policy rate further. However, the timing and pace of further reductions in the policy rate will be guided by incoming information and our assessment of its implications for the inflation outlook. The Bank says they are committed to maintaining price stability for Canadians by keeping inflation close to the 2 per cent target.

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Peterborough County Announces Appointments to its Leadership Team

Peterborough County has added Rhonda Keenan as the new General Manager of Economic Development and Sarah Budd as the new Manager of Community Development.

peterborough county logo

The County announced the appointments in a media release Friday morning stating Keenan and Budd will join Tracie Bertrand, General Manager of Tourism and Communications, to “form a trifecta of excellence” driving the county’s future economic growth, community development and tourism.

“These faces will be familiar to those in our business community and bring continuity and years of local knowledge and expertise to their roles, said warden Bonnie Clark. “Together, this team will work collaboratively with our townships, First Nations, and the City to ensure that our County businesses are supported - whether through retention, expansion, or bringing new enterprises to our area.”

Keenan, Budd and Bertrand will be based in the new Lakefield economic and tourism office.

“As the CAO for Peterborough County, I couldn’t be more excited about the exceptional team of professionals we’ve engaged to support economic development and tourism in the County, townships, and First Nations,” said CAO Sheridan Graham. “I am thrilled for our businesses, residents, and visitors as we move The Kawarthas forward.”

Keenan is the outgoing President and CEO of Peterborough & the Kawarthas Economic Development (PKED) which is disbanding later this year as the city and county bring economic development and tourism in house.

“I am thrilled to be joining the Peterborough County team. The County has an excellent corporate culture, is poised for growth, and offers the ideal mix of opportunity and lifestyle – the perfect combination for any economic developer,” stated Keenan. “I am excited to get to work with this amazing team and continue to help support sustainable economic growth across Peterborough County.”

"On behalf of the Peterborough & the Kawarthas Economic Development (PKED) Board of Directors and our staff and stakeholders, I am very pleased that Rhonda will continue to serve the region and help drive economic development forward in this new role," stated Burton Lee, PKED board chair.

The board of the Peterborough and the Kawarthas Chamber of Commerce announced the resignation of Budd as president and CEO on Thursday.

"Although I love my position as President and CEO of the Peterborough & Kawartha Chamber of Commerce, I could not pass up the opportunity to join Peterborough County's new economic development division and to learn and work with the highly respected and successful Rhonda Keenan," Budd said.

"I am truly thrilled to be part of such a dedicated and forward-thinking team and excited to work with Rhonda and Sarah,” added Bertrand. “I look forward to continuing our collaboration to drive positive change and growth in the region.”

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U.S. Consul General Takes a Stop In Peterborough

The City of Peterborough welcomed Baxter Hunt, U.S. Consul General in Toronto to town on Monday.

(From left to right) Jeff Leal, Peterborough Mayor; Bonnie Clark, Peterborough County Warden; Vijay Kumar Khatri, Fairlife/Minute Maid senior director of operations and Baxter Hunt, U.S. Consul General. Fairlife/Minute Maid was one of several places Hunt was toured to by Leal and Clark. Photo by David Tuan Bui.

Consul General Hunt's visit is part of the City’s efforts to position Peterborough as a destination of choice for innovative businesses and people as outlined in the City Council’s Strategic Plan according to a press release.

Hunt was welcomed by Jeff Leal, Peterborough Mayor and Bonnie Clark, Peterborough County Warden at City Hall. They discussed the strong, existing relationships with American companies and people in the region.

“It was truly an honour to host Consul General Baxter Hunt in Peterborough today and to have meaningful conversations with the esteemed representative of the United States in Toronto. We are focused on building strong, collaborative relationships and were delighted to be able to showcase the deep connections we share with our American neighbours,” said Leal. “The visit was a welcome opportunity to show off our beautiful, dynamic, innovative community. I look forward to more collaborative conversations and visits.”

Hunt joined a roundtable with Peterborough and the Kawarthas Chamber of Commerce members to learn about the region’s business climate and build conversations with the local businesses. He also toured the Coca-Cola facility, the Flexjet Flying Colours facility at the Peterborough Airport and the new Canadian Canoe Museum next to Little Lake. 

The daylong visit featured local cuisine and a tour of Peterborough County and the Peterborough Region.

“I have had the honour of serving as the Consul General in Toronto since last October and one of the best parts of my job is engaging with communities and regions such as Peterborough that are creating jobs and economic prosperity in both our countries,” said Hunt. “I appreciate the invitation to Peterborough where I have experienced the vibrant community first-hand this summer. The full day engagements highlighted the strong economic ties, people-to-people ties and collaborative spirit between the United States and Canada.  I look forward to continuing the many conversations we started today.”

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Nominations Now Open for the Chamber of Commerce's Business Excellence Awards

Peterborough and the Kawarthas Chamber of Commerce has opened the call for nominations for the 2023 Business Excellence Awards. 

photo courtesy of the Peterborough and the Kawarthas Chamber of Commerce.

Nominating your favourite business is as easy as entering their name on our Express Nomination Form. The Chamber will then reach out to let them know and collect the details. Self-nominations are encouraged and are a great way to recognize your team. Express and self-nomination forms are available online.

The Business Excellence Awards were established to promote the advancement of responsible business leadership within the community. Awards will be handed out in over 20 categories including the prestigious Business Citizen of the Year Award. 

Businesses and individuals within the City and County of Peterborough are eligible, and do not need to be members of the Chamber of Commerce.

“In Peterborough and the Kawarthas, excellence is all around us,” says Sarah Budd, Chamber President & CEO.  “Every day, businesses and not-for-profits throughout the city and county are delivering exceptional service, providing incredible experiences, and finding innovative ways to grow. We encourage everyone to take a moment to recognize the businesses and organizations that make our community great.”

The Early Bird nomination deadline for nominations is May 10 at 4:30 p.m. and the Final deadline for nominations is May 24 at 4:30 p.m. The nominations received before May 10 at 4:30pm will be entered into the Early Bird Draw to win a $100 gift card for the Chamber member business of your choice.

Three Finalists in each category will be announced in August, with the award recipients announced live on the big stage – October 18th at Showplace Performance Centre.

There are categories for every business size and sector:

• 4-Under-40 Profiles in memory of Kathy Windrem

• Business Citizen of the Year

• Business Student Leadership Prizes

• Businesswoman of the Year – Entrepreneur

• Businesswoman of the Year – Organization

• Commercial Development or Renovation

• Customer First

• Employer of the Year

• Entrepreneurial Spirit

• Farm Family of the Year

• Green Initiatives

• Health & Wellness

• Hospitality

• Immigrant Entrepreneur of the Year

• Local Focus

• Marketing & Promotion

• Micro Business

• Not-for-profit

• Professional Services

• Retail

• Skilled Trades

• Stuart Harrison President’s Award

• Tourism

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Plans Underway For More Temporary Patio and Pedestrian Space in Downtown Peterborough As Patio Season Approaches

Patio season is approaching with plans underway to create more patio and pedestrian space in Downtown Peterborough, and applications for temporary patios for this season are now available.

file photo.

Earlier this year, Peterborough City Council approved making the expanded patio program a regular, annual program for the downtown. For the last three years, a temporary expanded patio program allowed downtown business to apply to expand their patio space on sidewalks or use on-street parking adjacent to their business as part of a COVID-19 response efforts.

Town Ward Councillors Alex Bierk and Joy Lachica see many benefits to expanded patios.

“Downtown Peterborough is beautiful and having expanded patios adds to the vibrancy of the area,” said Councillor Lachica. “There’s nothing like a summer day strolling downtown with shops, restaurants and cafes brimming with people enjoying themselves and supporting local. Patios help make our downtown a destination.”

“I believe in the culture of downtown. It plays a crucial role in bringing the City to life during the summertime,” said Councillor Bierk. “With the City’s patio program expanding there is a lot to celebrate. Not only does this help local shops, restaurants, and cafe’s by increasing capacity and attracting more people downtown — it also generates employment opportunities. Along with the patio program, we also have 30 plus new businesses that have opened in the downtown core this past year. There’s a lot to be excited about.”

The plan includes: 

• Allowing businesses on George, Water and Charlotte Streets to use on-street parking spaces next to their businesses for additional outdoor business/patio space

• Maintaining the existing two vehicular travel lanes and cycling lanes on George and Water streets

• Reducing Hunter Street West between George and Aylmer streets to a one-lane, one-way street to expand pedestrian space and available patio areas

• Maintaining Charlotte Street as a two-way, two-lane street, while allowing for patios in on-street parking spaces next to participating businesses through the patio permit process

• The use of decorative fencing and planters to delineate between the new pedestrian areas, expanded/on-street patios and vehicular traffic lanes

• The program has been expanded to allow businesses in East City along Hunter Street East to operate a patio on a portion of the city sidewalks

• A $300 Patio Licence fee for applicants

Reduced speed limits will be put in place on streets with patios. Parking spaces, loading zones and designated waste pick-up areas may be adjusted once patio locations have been confirmed with participating businesses.

Considerations for accessibility, including parking and barrier free travel will be required, and the City will work with licence holders to find feasible solutions to ensure everyone can enjoy downtown public space. 

Patio Licences are required for all individuals, partnerships or corporations who are proposing to place a patio on City-owned property. Interested parties are invited to visit the City’s Application, Licenses and Permits webpage for more information on the application process. Applicants are now able to submit an application, permit fee and supporting documents through the City’s website. 

The City is requesting that applicants who wish to have their Patio Licence ready for the Victoria Day long weekend submit a complete application by April 6. The second round of patio installations is planned to take place the week of June 12 for applicants that submit an application by May 8. The last day to apply for the 2023 patio season is June 1. The proposed installation dates are subject to change at the discretion of the City.

To ensure compliance with the patio permits and limit the City’s risk related to non-permitted patios operating on City-owned lands, an Administrative Monetary Penalty System has been implemented that will create an enforcement process for businesses that are not in compliance with their permit or have not obtained a permit.

For general inquiries relating to outdoor patios on City-owned lands please contact Nicole Huculiak, Urban Design Supervisor by email at nhuculiak@peterborough.ca or by phone at 705-742-7777 ext. 1654.

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Eight Small Local Businesses Awarded $5,000 Grants Through Starter Company Plus Program

Peterborough and the Kawarthas Economic Development (PKED) has awarded $5,000 in micro-grants to local small businesses in the City of Peterborough and Peterborough County through the Government of Ontario’s Starter Company Plus program, announced Monday.

Photo courtesy of Peterborough and the Kawarthas Economic Development.

12 small business entrepreneurs successfully completed the five-week Starter Company Plus online business training course offered through PKED’s Business Advisory Centre, and were awarded grants to support the growth of their business based on the strength of their plan and pitch.

The following businesses were each awarded a micro-grant:

• Jacquelyn Craft, The Neighbourhood Vintage, City of Peterborough

• Lisa Mace, ECO Cabin, Township of North Kawartha

• Ineke Turner, Turner & Pooch Dog Training, City of Peterborough

• Nathan Truax, Truax Leather Co., City of Peterborough

• Lisa Burkitt, Burkitt’s Gardening & Home Services, Township of Havelock- Belmont-Methuen

• Kate Griffin, Mental Wealth Counselling, Township of Otonabee South-Monaghan

• Jena Trimble, Zen Home and Cottage Cleaning Services, Township of Havelock- Belmont-Methuen

• Vanessa Bruce, Vanessa Bruce Virtual Services, City of Peterborough

Since the program’s launch in 2017 it has assisted over 215 local entrepreneurs and more than 174 small businesses, creating over 200 jobs in the local economy according to PKED.

“This intake of the Starter Company Plus program saw many new businesses that were referred from past participants. Now in its fifth year, the program has directly contributed to the growth and development of small businesses in Peterborough & the Kawarthas and has allowed us to support the largest cohort to date,” said Madeleine Hurrell, manager of PKED’s Business Advisory Centre. “In Peterborough and the Kawarthas, we are lucky to have thriving and growing small businesses. We have seen our communities rally around entrepreneurs and small businesses.”

For more information on the Business Advisory Centre, visit www.investptbo.ca/bac

Average Home Price In Peterborough Reaches All-Time High

The average home price in Peterborough city and county in March reached $864,208, a new all-time high, according to the Peterborough and the Kawarthas Association of Realtors.

Stock Photo.

The 2022 average is up 17 per cent from the 2021 March average.

280 residential units were sold, which is down down 1.8 per cent from March 2021.

There were 157 active listings at the end of March, down 11.3 per cent from last year.

The average price for March in the City of Kawartha Lakes was $904,167, the second highest monthly average on record for the Kawartha Lakes Real Estate Association.

The average price in Northumberland County topped the $1-million milestone at an average of $1,009,087. This average is up 25.5 per cent from 2021, but down 11.3 per cent from the all-time high of $1,122,819 last month.

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App-Based Gig Workers Get General Minimum Wage Established By Ontario Government

The Ontario Government introduced new legislation that will give app-based gig workers a $15 minimum wage and transparency regarding their tips announced on Monday.

According to a survey conducted by Ipsos, 62 per cent of Ontarians agree that the province should guarantee a certain minimum level of income for technology platform or ‘gig’ workers. Screenshot.

The “Digital Platform Workers’ Rights Act” permits app-based employees — such as ride-share drivers and couriers — to a $15 minimum wage and their tips.

Workers will also receive a recurring pay period and payday with their tips prohibited from being withheld by platform operators.

“As part of our plan to build a stronger economy that works for everyone, we want all workers to have every opportunity to earn a good living and provide for their families,” said Doug Ford, Ontario Premier. “It doesn’t matter if you work for a big company, a small business or for a rideshare app. Our government won’t leave any worker behind.”

Ford added that five Canadians work in the gig economy and says data predicts an increase in app-based workers.

The government’s proposals have laid out the following rights and protections for digital platform workers:

• Earning at least the general minimum wage for time worked

• The right to keep their tips along with regular pay periods

• The right to information and clarity around algorithms including

  • how pay is calculated; and

  • how and why a worker might be penalized in the allocation of work

• Written notice if they are being removed from the platform and why

• The right to resolve their work-related disputes in Ontario

• Protection from reprisal should they seek to assert their rights.

“No one working in Ontario should ever make less than minimum wage for an hour's work," said Monte McNaughton, Minister of Labour Training and Skills Development. “No one working in Ontario should be dismissed without notice, explanation, or recourse. No one should have to travel out of the country to resolve a workplace dispute or sign a contract they do not understand. These core rights are a foundation in our mission to help all workers earn bigger paychecks to take care of their families, not an endpoint.”

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