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Ceasefire Talks in Gaza Reach Pivotal Stage

  Mourners pray as they attend the funeral of Palestinians who, according to medics, were killed in an Israeli strike this week, at Al-Shifa Hospital in Gaza City. Negotiations aimed at halting the ongoing conflict in Gaza have entered a critical juncture, with mediators warning that a full ceasefire agreement has yet to be finalized. Diplomatic sources indicate that while progress has been made in bridging differences between the parties, key issues remain unresolved, leaving the situation fragile and uncertain. International mediators, including representatives from regional powers and global organizations, continue to press for an immediate cessation of hostilities to allow humanitarian aid into the besieged territory. However, disagreements over security guarantees and the sequencing of steps toward a lasting truce have slowed the process. Observers stress that the coming days will be decisive. Without a breakthrough, the risk of renewed escalation remains high, threatening ...
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Bank of Canada may trail Fed rate cut as wage growth continues to soar

 

The Bank of Canada may not follow the Federal Reserve in cutting interest rates, despite the Canadian economy flirting with recession. This is due to high growth in Canadian wages and shelter costs, which could see the central bank shifting to interest rate cuts after the Federal Reserve. However, factors peculiar to Canada, such as declining productivity, record levels of immigration, and a relatively unionized workforce, could stand in the way of inflation returning to the Bank of Canada’s 2% target. Wage growth could be slow to ease as collective bargaining agreements lock in multi-year wage settlements. Analysts suggest that there should be more differentiation between the Fed and BoC rate paths than is currently priced.

The Canadian economy is facing a challenging time, with the Bank of Canada’s 2% inflation target still out of reach. The Bank of Canada may need to take a different approach to the Federal Reserve in order to achieve its goals. Wage growth in Canada is much higher than in the United States, which could make it difficult for the Bank of Canada to cut interest rates. However, analysts suggest that there should be more differentiation between the Fed and BoC rate paths than is currently priced. This could help support the Canadian dollar and delay a rebound in the economy, which would disappoint heavily indebted households, many of which are due to renew their mortgages at higher borrowing costs this year.

In conclusion, the Bank of Canada may trail the Federal Reserve in cutting interest rates due to high growth in Canadian wages and shelter costs. However, factors peculiar to Canada, such as declining productivity, record levels of immigration, and a relatively unionized workforce, could stand in the way of inflation returning to the Bank of Canada’s 2% target. Wage growth could be slow to ease as collective bargaining agreements lock in multi-year wage settlements. Analysts suggest that there should be more differentiation between the Fed and BoC rate paths than is currently priced.

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