TORONTO — Five things to watch for in the Canadian business world in the coming week:
Interest rate decision: The Bank of Canada is expected to announce its decision for its overnight interest rate target on Wednesday. Federal budget officer Yves Giroux said in May that he expects the central bank to raise its trendsetting interest rate by half a percentage point in the second half of 2022, rising thereafter until it hits 2.5 per cent, which would affect rates charged on things like mortgages and business loans.
BoC speech: Bank of Canada deputy governor Timothy Lane is set to give a speech by video webcast and hold a news conference on Thursday. Deputy governor Toni Gravelle said in March that the bank was suspending market liquidity-focused programs as corporate and provincial borrowers had ”unfettered access to fully functional debt markets” and that it was clear the bank's involvement was no longer required.
Transat earnings: Transat AT will hold a Q2 conference call on Thursday. The company announced in May that Jean-Marc Eustache was retiring as chair and chief executive. His retirement follows a tumultuous year due to the pandemic that also saw a deal for Transat to be bought by Air Canada fall apart.
DavidsTea CCAA plan: DavidsTea will hold a creditors meeting on its plan of arrangement under the Companies' Creditors Arrangement Act on Friday. The insolvent beverage retailer is looking for approval to distribute about $18 million to creditors in Canada and the U.S.
Q1 household debt figures: Statistics Canada is expected to release its national balance sheet and financial flow accounts figures including household debt-to-income numbers for the first quarter of 2021 on Friday. The agency reported in March that Canadian households piled up a record amount of mortgage debt for the second quarter in a row amid low interest rates and high housing prices.
This report by The Canadian Press was first published June 6, 2021.
The Canadian Press
