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Bank Of Canada Cuts Interest Rates Amid US Tariff Threats

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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.

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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.

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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.

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READ ALSO: From Oyo To Canada: Owoade’s Journey To Alaafin’s Throne

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.

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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.

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

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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.”

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Strait Of Hormuz: Pakistan Thanks Trump For Pausing ‘Project Freedom’

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Pakistani Prime Minister Shehbaz Sharif on Wednesday expressed gratitude to United States President Donald Trump for temporarily pausing ‘Project Freedom’, an initiative to secure shipping through the Strait of Hormuz.

In a statement posted on X, Sharif thanked Trump for pausing the “Project Freedom” mission, praising him for his courageous leadership and timely announcement.

According to him, Trump’s decision was made in response to requests from Pakistan, Saudi Arabia and other brotherly countries.

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READ ALSO: Oil Prices Drop After Iran Reopens Strait Of Hormuz

He added that the pause would go a long way towards advancing regional peace, stability and reconciliation during the sensitive period.

“Pakistan remains firmly committed to supporting all efforts that promote restraint and a peaceful resolution of conflicts through dialogue and diplomacy.

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“We are very hopeful that the current momentum will lead to a lasting agreement that secures durable peace and stability for the region and beyond,” Sharif said.

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FG Summons S. African Envoy Over Rising Xenophobic Attacks On Nigerians

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The Federal Government has summoned the Acting High Commissioner of South Africa in Abuja over renewed concerns about xenophobic attacks and protests targeting foreign nationals, including Nigerians, living in that country.

The Ministry of Foreign Affairs said the envoy is expected at its headquarters on Monday, May 4, 2026, for a high-level engagement aimed at addressing the growing tension and safeguarding bilateral relations between both countries.

In a statement issued on Sunday, the spokesperson for the Ministry, Kimiebi Ebienfa, said Nigeria would formally express its “profound concern” over recent developments in South Africa, particularly reports of harassment, violence, and destruction of property belonging to foreign nationals.

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According to the ministry, the meeting will focus on ongoing demonstrations by various groups in South Africa and documented cases of attacks on Nigerians and their businesses in parts of the country.

READ ALSO:Group Condemns Tunisian Xenophobic, Racial Attacks On African Migrants

The objective of this engagement is to formally convey the Nigerian Government’s profound concern regarding recent events that have the potential to impact the established cordial relations between Nigeria and South Africa,” the statement read.

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It added that discussions would also address ongoing demonstrations by various groups within South Africa and documented instances of mistreatment of Nigerian citizens and attacks on their businesses.

The ministry acknowledged growing anger among Nigerians over reports of xenophobic violence but urged restraint, stressing that diplomatic engagement remained the preferred channel for resolution.

It assured Nigerians that the Federal Government was actively engaging South African authorities to ensure the protection of its citizens abroad.

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READ ALSO:US Visa Adjudication Sparks Concerns Over Diplomatic Relations

The Ministry is aware of the growing discontent among Nigerians concerning the treatment of their nationals in South Africa. Nevertheless, it implores the Nigerian public to remain calm and reiterates the Federal Government’s commitment to protecting the rights and well-being of Nigerian citizens residing in South Africa,” the statement added.

The latest diplomatic move comes amid renewed reports of xenophobic tensions in parts of South Africa, where foreign-owned businesses have occasionally been targeted during protests linked to unemployment and economic hardship.

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South Africa has a history of xenophobic violence dating back to 2008, with subsequent flare-ups in 2015 and 2019, when mobs attacked migrants, looted shops, and displaced thousands of foreign nationals across several provinces.

In past incidents, Nigerians and other African nationals were among those affected, prompting strong diplomatic reactions from Abuja and calls for stronger protection of foreign communities.

While South African authorities have repeatedly condemned such attacks and deployed security forces to restore order during outbreaks of violence, concerns have persisted over recurring hostility in some communities.

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Mississippi Man ‘Kills Mother, Flushes Her Remains Down Toilet’

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A 29-year-old Mississippi man, Zachary Lavel Jackson Jr., has been charged with multiple offences, including first-degree murder, over the death of his mother, Lana Brown Bradley, after deputies responded to her Natchez home on April 4 following a missing person report from relatives.

The Adams County Sheriff’s Office said deputies were called to Bradley’s residence after her oldest son was unable to reach her the previous day.

Jackson was initially identified as a family member before investigators confirmed he was her son.

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Sheriff Travis Patten described the case as deeply disturbing.“This is by far the most heinous crime that I’ve ever witnessed in my entire life. We weren’t out there that day; this was one of those things when we walked up.

READ ALSO:Bandits Kill Nine, Injure Eight In Fresh Attack On Zamfara Village

This was one of those cases that you will never, ever forget in your life. This is the type of case that follows you home,” Patten told WJTV.

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According to the sheriff, deputies noticed signs of a recent cleanup when they arrived at the home.

“As soon as they walked in the house, they could just see where somebody had been cleaning up, and they could smell chemicals all throughout the house.

“Floor was extremely slippery. And the older son said that this is just unusual for the youngest son to be cleaning up the house like that,” Patten explained.

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READ ALSO:US Comedian Reggie Carroll Shot Dead In Mississippi

Jackson, the youngest son, was found in a bathroom, where deputies allegedly made a discovery that became central to the investigation.

“I can say what was in the toilet, and it was her flesh. He chopped her up in pieces and dismembered her in a way that whoever came looking for her would have to do their due diligence to find her, and that’s just what we did,” the sheriff said.

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Authorities said Jackson allegedly placed parts of his mother’s body in a suitcase and attempted to dispose of other remains.

Jackson faces charges of first-degree murder, second-degree murder, mayhem and tampering with evidence.

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Investigators said Bradley, a retired teacher, had recently sought to evict her son from the home. Patten, citing family interviews, said Jackson was believed to be mentally unstable but also noted that his actions appeared deliberate.

“He had threatened her the day before because she was looking to have him evicted from the home.

“She was in the process of doing so and had just gone to court the day before to have him removed from the home,” Patten explained.

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