This module provides a concise summary of selected Canadian economic events, as well as international and financial market developments by calendar month. It is intended to provide contextual information only to support users of the economic data published by Statistics Canada. In identifying major events or developments, Statistics Canada is not suggesting that these have a material impact on the published economic data in a particular reference month.
All information presented here is obtained from publicly available news and information sources, and does not reflect any protected information provided to Statistics Canada by survey respondents.
Wildfires
- On July 2nd, the Government of Quebec announced it had partially lifted the prohibition on access to forests on public lands. On July 17th, the Government announced it had lifted the ban on open fires in or in the vicinity of a forest.
- On July 9th, the Government of Yukon announced it had put a level 2 fire ban in place for all Yukon fire management districts due to the extreme fire danger caused by hot and dry weather and recent fire activity.
- On July 16th, the Government of Canada announced it had approved a Request for Federal Assistance from the Government of British Columbia to support their efforts to combat wildfires.
Resources
- Calgary-based TC Energy Corporation announced it had entered into an agreement with Global Infrastructure Partners (GIP) of New York to monetize a 40% interest in its Columbia Gas Transmission, LLC and Columbia Gulf Transmission, LLC systems for $5.2 billion in cash. TC Energy said the transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions.
- Saskatoon-based Nutrien Ltd. announced it had curtailed production at its Cory potash mine due to the loss of export capacity as a result of the International Longshore and Warehouse Union (ILWU) Canada strike at the Port of Vancouver.
Other news
- The Government of Canada released the Inefficient Fossil Fuel Subsidies Government of Canada Self Review Assessment Framework and the Inefficient Fossil Fuel Subsidies Government of Canada Guidelines which support the decarbonization of Canada's oil and gas sector and builds on Canada's commitment to end new direct public support for the international unabated fossil fuel energy sector.
- The Government of Canada announced that it and the Government of Ontario had finalized an agreement with Stellantis-LG Energy Solutions (LGES) to provide performance incentives to Stellantis-LGES of up to $15 billion to produce batteries for electric vehicles, subject to conditions and benefits to Canada and Ontario.
- On July 22nd, the Government of Nova Scotia declared a provincewide state of emergency in response to severe flooding across the province. On July 25th, the Government of Canada announced that on July 23rd it had approved a request for Federal Assistance from the province of Nova Scotia to assist with their response to the flooding. On July 26th, the Government of Nova Scotia said it was lifting the state of emergency.
- The Bank of Canada increased its target for the overnight rate by 25 basis points to 5.00%. The last change in the target for the overnight rate was a 25 basis points increase in June 2023. The bank said it was also continuing its policy of quantitative tightening.
- TD Canada Trust, RBC Royal Bank of Canada (RBC), BMO Bank of Montreal, Canadian Imperial Bank of Commerce (CIBC), Scotiabank, and Laurentian Bank of Canada announced they were increasing their Canadian dollar prime lending rates from 6.95% to 7.20%, effective July 13th.
- On July 1st, the BC Maritime Employers Association (BCMEA) announced that the International Longshore and Warehouse Union Canada (ILWU) and its members began strike action at various sites across British Columbia. On July 13th, the BCMEA announced that the parties had reached a tentative agreement and that the parties were working to resume operations as soon as possible. On July 18th, the ILWU Canada announced that the Longshore Caucus had voted down the Mediators Recommended Terms of Settlement. On July 29th, the Government said it had directed the Canada Industrial Relations Board to determine whether the union's rejection of the tentative agreement had eliminated the possibility of a negotiated resolution and that it had directed them to impose final binding arbitration to resolve outstanding terms of the collective agreement if the possibility of a negotiated settlement is not possible.
- Toronto-based Avalon Advanced Materials Inc. announced it had signed a memorandum of understanding to create a strategic partnership with Metso Corporation of Finland to pursue the development of a lithium hydroxide processing facility in Thunder Bay. Avalon said the parties anticipate reaching a definitive agreement on or before September 1st, 2023.
United States and other international news
- The U.S. Federal Open Market Committee (FOMC) raised the target range for the federal funds rate by 25 basis points to 5.25% to 5.50%. The last change in the target range was a 25 basis points increase in May 2023. The Committee also said it will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities.
- The European Central Bank (ECB) raised its three key interest rates by 25 basis points to 4.25% (main refinancing operations), 4.50% (marginal lending facility), and 3.75% (deposit facility). The last change in these rates was a 25 basis points increase in June 2023.
- The Bank of Japan (BoJ) announced it will apply a negative interest rate of -0.1% to the Policy-Rate Balances in current accounts held by financial institutions at the BoJ and that it will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at around zero percent.
- The Reserve Bank of Australia (RBA) left the target for the cash rate unchanged at 4.10%. The last change in the target for the cash rate was a 25 basis points increase in June 2023.
- The Reserve Bank of New Zealand (RBNZ) left the Official Cash Rate (OCR), its main policy rate, unchanged at 5.50%. The last change in the OCR was a 25 basis points increase in May 2023.
- On July 11th, U.S. President Joseph R. Biden, Jr. declared that an emergency exists in the State of Vermont and ordered Federal assistance to supplement State and local response efforts due to the emergency conditions in the areas affected by flooding beginning on July 9, 2023, and continuing.
Financial market news
- West Texas Intermediate crude oil closed at USD $81.80 per barrel on July 31st, up from a closing value of USD $70.64 at the end of June. Western Canadian Select crude oil traded in the USD $47 to $60 per barrel range throughout July. The Canadian dollar closed at 75.89 cents U.S. on July 31st, up from 75.53 cents U.S. at the end of June. The S&P/TSX composite index closed at 20,626.64 on July 31st, up from 20,155.29 at the end of June.