Winnipeg Free Press

Winnipeg Free Press (Newspaper) - March 3, 2022, Winnipeg, Manitoba <§> PAGE A1 The FLYER IN TODAY'S PAPER Free Press WINNIPEG SUBSCRIBERS ONLY FOR MANITOBA. FOR 150 YEARS. FOREVER WITH YOUR SUPPORT. THURSDAY, MARCH 3, 2022 SERVING WINNIPEG AND THE WEST SINCE 1872 Central bank hikes key rate to combat inflation Canadians put on notice increase won't be the last JORDAN PRESS T ^ HE Bank of Canada has raised its key interest rate for the first time since slashing the benchmark rate to near-zero at the start of the COVID-19 pandemic, in a bid to tackle inflation rates that are likely to keep rising from their current three-decade high. The central bank increased its key rate by a quarter of a percentage point to 0.5 per cent on Wednesday in a bid to help fight inflation, which is at its highest level since 1991. The move prompted Canada’s Big Five banks and other financial institutions to raise their prime lending rates, which will increase the cost of loans such as variable-rate mortgages that are linked to the central bank’s benchmark rate. In making its announcement, the Bank of Canada said it expects inflation to be higher in the near term than previously thought. The central bank warned this week’s rate hike won’t be the last, with economists expecting multiple increases before the end of the year. Rate hikes in the past took place before the economy hit its full potential and inflation went up, said TD chief economist Beata Caranci. But circumstances are the opposite now, she said, raising the pressure on the bank to get right the timing and pace of hikes. “They have actually less wiggle room because we are in a high inflation environment and they weren’t proactive as they were in past cycles,” she said. “On the flip side, if things go horribly from an economic perspective, they don’t have room now to cut because we’re not at a level where they could give back stimulus.” Two years ago this week, the Bank of Canada first cut its key policy rate to get ahead of economic fallout from the emerging novel coronavirus crisis. What followed were two more rate cuts in March 2020 that brought the key policy rate to 0.25 per cent. Since then, the economy has bounced back quickly. Statistics Canada said Tuesday the economy grew at an annual rate of 6.7 per cent over the last three months of 2021, which was stronger than the Bank of Canada had expected, and real gross domestic product is now above pre-pandemic levels. The bank said it expects growth in the first quarter of this year to be more solid than its previous projections in January, even with an Omicron-related setback that month in which 200,000 jobs were lost. It expects the labour market setback to be temporary, and strong household spending should strengthen further as public health restrictions ease as several provinces have started to do this month. Adding to existing inflationary pressures is Russia’s unprovoked invasion of Ukraine, which has sent global oil prices higher and added new kinks to global supply chains. In response, Industry Minister Fran-gois-Philippe Champagne told reporters on Parliament Hill he has asked the Competition Bureau to keep an eye on prices at the pumps, and spoken to companies about boosting domestic production to counteract any possible shortages. Even though the bank can’t specifically fight inflation linked to the conflict, it can tackle domestic price increases like those in the country’s housing market, said Royce Mendes, managing director and head of macro strategy at Desjardins. The bank hopes that by making it more expensive to borrow, demand from buyers will cool. “These are the types of inflationary pressures that the Bank of Canada can contain with increasing its interest rates and that’s what it’s trying to do,” Mendes said. The first rate hike may have the lar- gest affect on how households manage their debt, but the central bank would have to raise rates by a full percentage point before there is an effect on the country’s housing market, said BMO chief economist Douglas Porter. “Every single basis point matters to somebody out there,” Porter said. (A basis point is a one-hundredth of a percentage point.) “We’d need to see a number of Bank of Canada interest rate hikes before it would really begin to seriously affect the economy.” A rate hike generally takes as little as six months or as many as 18 months before it has an effect on headline inflation. Of more immediate concern for the bank’s senior decision-makers, and noted in Wednesday’s announcement, is that Canadians are starting to expect that inflation will stay higher for longer, which could lead to runaway inflation. — The Canadian Press IN THE HOUSE Bills introduced as Manitoba legislature resumes — but all eyes on Ukraine / A4 MIKAELA MACKENZIE / WINNIPEG FREE PRESS Premier Heather Stefanson bows her head alongside Cameron Friesen and Cliff Cullen during a moment of silence for Ukraine as the Manitoba legislature was back in session Wednesday. Girl, 15, accused of murder after body found in park CHRIS KITCHING Paul Enns: found dead in Assiniboine Park A 15-year-old Stonewall girl is accused of murdering and robbing a Winnipeg man whose body was found in a car in Assiniboine Park early Saturday. City police officers discovered Paul Enns, 43, in a secluded parking lot off Conservatory Drive, just north of Corydon Avenue, when they responded to a well-being call at about 3 a.m. A park security officer had alerted police after approaching the car and seeing Enns dead inside, a city hall source said. The teen, whose hometown is 35 kilometres from the homicide scene in Tuxedo, has been charged with second-degree murder and robbery. The girl, who cannot be named under the Youth Criminal Justice Act, appeared in court at the Manitoba Youth Centre on Wednesday following her arrest a day earlier. She is due back in court Tuesday. A source with knowledge of the investigation said another arrest is expected. Police would not say if Enns and the suspect knew each other or what brought them together in the parking lot, which is surrounded by trees near Assiniboine Park’s southeast boundary. “I know there’s lots of questions over the circumstances, but I just can’t provide that right now,” spokeswoman Const. Dani McKinnon said. Grieving family and friends shared their memories of Enns on Facebook, where his mother Claudette announced his death in a post Monday. “My beautiful son who was so kind and loved everyone is gone,” she wrote. “I will give you more details when the police tell us more. Please pray for our family and please pray for Paul Enns.” In response to messages of condolence, Claudette Enns said her family had been through “the worst day of our lives.” • MURDER, CONTINUED ON A2 Isolation rule phased out; doctors say it's too soon KATIE MAY MANITOBANS who test positive for COVID-19 will no longer be legally required to isolate, as the province takes another step in returning the province to a “new normal.” Public health restrictions for indoor mask use will also disappear March 15, deputy chief provincial public health officer Dr. Jazz Atwal announced Wednesday. Rather than requiring COVID-positive Manitobans to stay home, public health will only recommend they do so. The change is because the province is “moving to (the) endemic stage” of its COVID-19 response, Atwal said. He said isolation orders are not in place for other types of infections, and Manitobans need to “learn to live with” COVID-19. “It’s going to continue to be a part of our lives,” Atwal said. But he said public health messaging will stay the same: stay home when sick. “You shouldn’t be out coughing in different locations. If you’re sick, you should stay at home, regardless of what is causing that illness, until you recover from that illness,” Atwal said. Current self-isolation rules require fully vaccinated Manitobans to stay home for five days after testing positive, even if they have no symptoms. If they do have symptoms, they must wear a mask in public places for an additional five days after isolation. The current rules require 10 days of self-isolation for Manitobans who aren’t fully vaccinated. Those who break the rules can be fined. Enforcement won’t be possible once the order is lifted. Public health expects to release more guidance about the change, Atwal said. Also as of March 15, the province will stop COVID-19 case investigations. They’ll still notify people who test positive, but won’t try to figure out how they contracted the virus or who they might have transmitted it to, Atwal said. Self-isolation requirements for travellers who return to Manitoba were lifted Feb. 15. Saskatchewan has already lifted all COVID-19 restrictions, including self-isolation requirements. • ISOLATION, CONTINUED ON A2 WEATHER oba, to PARTLY SUNNY. HIGH -16 — LOW -19 ns mi r er INSIDE MISSING THE POINT BACK ON TRACK SMILING, THRIVING Demands for COVID booster shots fall, deluge of winter infections to blame? / A3 Provincial indoor champs set to be crowned after two-year absence / C5 Portrait project by KC Adams celebrates resilience of Indigenous children / D1 d c- A_01_Mar-03-22_FP_01.indd 1 2022-03-02 10:34 PM ;