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Bank Of Canada Cuts Interest Rates Amid US Tariff Threats

Published

10 months ago

January 30, 2025

The Bank of Canada on Wednesday, cut its key lending rate 25 basis points to 3.0 per cent, noting that US tariff threats are creating uncertainty for the economy.

“The economy is expected to strengthen gradually and inflation to stay close to target (of two per cent),” the central bank said. “However, if broad-based and significant tariffs were imposed, the resilience of Canada’s economy would be tested.”

“A protracted trade conflict (with the United States) would most likely lead to weaker GDP and higher prices in Canada,” it added.

US President Donald Trump has said he would slap 25 per cent tariffs on imports from US neighbours Canada and Mexico as early as February 1.

READ ALAO: Canada To Reduce Immigration By 21% In 2025

Retaliation by Canada in the form of matching counter-tariffs, which officials have told AFP are already in the works, risks leading to a trade war between the two allies.

Canada’s central bank said the situation has created “more-than-usual uncertainty” with the scope and duration of such a trade conflict “impossible to predict.”

It noted that the Canadian dollar has depreciated materially in advance of the tariffs being imposed. Oil prices have been volatile and rose above the bank’s last projection in October 2024.

Overall, the Canadian economy has recently picked up, despite weak business investment and a soft labour market, with both strong consumption and housing activity expected to continue.

The bank, however, lowered its growth forecast to 1.8 per cent in both 2025 and 2026, down from 2.1 per cent and 2.3 per cent, respectively.

The central bank has been aggressively cutting interest rates since last June, and with inflation now largely under control analysts are tentatively expecting rates to be reduced by a further 75 basis points by year’s end.

But tariffs, according to the central bank, would see Canadian exports — which mostly go to the United States, represent 20 per cent of Canada’s economy and support almost two million jobs — plunge.

There would also be significant job losses a further depreciation of the Canadian dollar and drop in business investment.

In a baseline scenario, the bank said Canadian GDP growth would be 2.5 percentage points lower than with no tariffs in the first year, and 1.5 percentage points lower in the second year.

“Unfortunately, tariffs mean economies simply work less efficiently — we produce and earn less than without tariffs. Monetary policy cannot offset this. What we can do is help the economy adjust,” central bank governor Tiff Macklem said.

TD Bank economist James Orlando commented in a research note: “We are still hopeful that tariff threats are more of a negotiation tactic, meaning they would be temporary and carry less long-term impacts.”

AFP

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Morocco Jails French Rapper Maes For Kidnapping Bid

Published

20 hours ago

November 26, 2025

Editor

A Moroccan court has sentenced French rapper Maes to seven years in prison on charges including the formation of a criminal gang and attempted kidnapping, local reports said Wednesday.

Maes, who has roots in Morocco and whose real name is Walid Georgey, was arrested upon landing in Morocco in January after fleeing the United Arab Emirates, where he feared he could be extradited to France, the reports said.

French authorities had issued an international arrest warrant for him over a separate criminal case.

He appeared in court late Tuesday and was found guilty of “forming a criminal organisation, attempted abduction and unlawful confinement” of a rival in Morocco, news website TelQuel reported.

The rapper with over a billion views on his YouTube channel was accused of tasking a gang and hitmen with killing the rival, but the plot was foiled, TelQuel added.

Maes has denied all charges, with his lawyers calling the case “empty” and “arguing that no evidence linked him to the other defendants”, TelQuel added.

Ten other people were sentenced as part of the case, with terms ranging from one to 10 years, according to news website Media24.

AFP was unable to independently verify the reports as prosecutors were not immediately reachable for comment.

In 2020, when Maes was one of France’s most-streamed rappers, he fell victim to extortion attempts in his native Sevran, a suburb north of Paris, according to reports.

He retaliated by opening fire with weapons he had at home, leading to a shootout. He then fled to Dubai with his family, according to an interview with French YouTube channel LEGEND.

Following the killing of his manager in 2022, he was suspected of ordering reprisals against those he believed were behind the murder, according to reports.

AFP

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UK Court Clears Comedy Writer Of Harassing Transgender Woman

Published

20 hours ago

November 26, 2025

Editor

A London court on Tuesday cleared Emmy award-winning comedy writer Graham Linehan of harassing a transgender activist online but found him guilty of criminal damage to their mobile phone.

Linehan, who co-created the popular 1990s sitcom “Father Ted” but has more recently become well-known for his gender critical views, had been accused of sending Sophia Brooks “abusive and vindictive” messages on social media.

He was also charged with criminal damage after deliberately knocking a phone out of Brooks’s hand as they filmed him on the sidelines of a London conference.

Ruling on the case, District Judge Briony Clarke said she was not convinced Linehan’s conduct “was oppressive and unacceptable beyond merely unattractive, annoying or irritating”.

Clarke also concluded Brooks was not “as alarmed and distressed as they portrayed themself to be”.

But convicting Linehan of criminal damage, the judge ruled he was “angry and fed up” and did not use “reasonable force” when the phone was taken from Brooks.

Clarke fined him £500 ($655) and ordered him to pay costs of £650 and a statutory surcharge of £200.

The Irish writer, who also co-created the popular sitcoms “Black Books” and “The IT Crowd”, became embroiled in a free speech row in Britain earlier this year over his anti-transgender stance.

It followed his arrest at London’s Heathrow Airport by armed police over accusations of inciting violence with his X posts insulting transgender people.

The arrest sparked a backlash and claims of state overreach, including from US tech billionaire Elon Musk. But in October, UK prosecutors said they would take “no further action” in that case.

AFP

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Prosecutors Seek Jail For Italian Influencer Ferragni In Fraud Case

Published

20 hours ago

November 26, 2025

Editor

Italian prosecutors asked a court on Tuesday to sentence fashion influencer Chiara Ferragni to one year and eight months in prison if found guilty of alleged fraud over charity endorsement deals.

The Instagram star and businesswoman has been on trial since September for aggravated fraud over promotions of a pandoro cake — a Christmas treat similar to a panettone — and Easter eggs, which purported to raise money for charity or social causes.

The 38-year-old, who is based in Milan, told the court during the closed-door hearing on Tuesday that she denied the charges and had always acted “in good faith”, her lawyer Giuseppe Iannaccone said.

Leaving the audience, Ferragni told a throng of journalists that she felt “confident… I can’t say anymore”.

A verdict is expected in January.

Aggravated fraud carries a jail term of between one and five years.

But Ferragni has chosen a fast-track trial, which gives defendants a sentence reduction — meaning she cannot receive more than a maximum penalty of two years and three months, according to a source close to her team.

In Italy, people sentenced to prison for less than two years rarely serve jail time.

Ferragni started out with a fashion blog, The Blonde Salad, in 2009, and in 2017, Forbes magazine named her its top fashion influencer.

Chronicling her glamorous lifestyle and being paid to promote high-end brands, she built the blog into a lucrative business, then used it as a springboard to launch her own eponymous label with stores around the world.

Her trailblazing story even became a Harvard Business School example of how social media fame can be monetised.

But the fraud accusations have hit her reputation and her endorsements.

Outside court for a hearing earlier this month, Ferragni acknowledged to journalists that it was a “difficult phase of my life”.

The allegations relate in part to Ferragni’s 2022 endorsement of a pandoro cake purportedly to raise funds for children undergoing treatment at a Turin hospital.

In December 2023, Italy’s communications watchdog (AGCOM) fined two of Ferragni’s companies one million euros ($1.2 million) for unfair commercial practices for the “Pandoro Pink Christmas” promotion — around the same sum they had made in the deal.

Shoppers were led to believe that buying the special edition cake made by Balocco would benefit the hospital, but it only received a single 50,000-euro donation from the company.

Balocco was fined 420,000 euros at the same time.

AGCOM also investigated Ferragni-branded Easter eggs from 2021 and 2022, linked to a social enterprise initiative.

Ferragni and her husband, rapper and music producer Fedez, who were one of Italy’s most famous celebrity couples, split in 2024.

AFP