Today: June 1, 2022

Today: June 1, 2022

By Andrew Thomson | UPDATED June 1, 2022 2:49pmET

Bank of Canada boosts key interest rate to 1.5%

The Bank of Canada has raised its benchmark interest rate another 50 basis points to 1.5% and suggested more increases will be needed to counter high inflation and high demand in the Canadian economy.

A written statement from the central bank said to expect inflation moving even higher than the current 6.8-per-cent mark and that the "risk of elevated inflation becoming entrenched" has risen:

The Russian invasion of Ukraine, China’s COVID-related lockdowns, and ongoing supply disruptions are all weighing on activity and boosting inflation. The war has increased uncertainty and is putting further upward pressure on prices for energy and agricultural commodities. This is dampening the outlook, particularly in Europe. In the United States, private domestic demand remains robust, despite the economy contracting in the first quarter of 2022. US labour market strength continues, with wage pressures intensifying. Global financial conditions have tightened and markets have been volatile.

WATCH: Travel and tourism industry discusses COVID-19 restrictions and border delays

At a news conference in Ottawa, representatives from the Canadian Travel and Tourism Roundtable call on the federal government to alleviate congestion at Canada’s border crossings and remove remaining COVID-19 travel restrictions.

WATCH: PM, Conservatives, NDP on B.C. drug decriminalization

The federal government will exempt adults in British Columbia from criminal charges for the personal possession of small amounts of opioids, cocaine, methamphetamine, and MDMA, after the province requested decriminalization to deal with the opioid crisis.

There will be no arrests, charges, or seizures under the exemption announced yesterday, which comes into effect on Jan. 31, 2023 for a three-year period and covers personal possession up to 2.5 grams.

The exemption will not apply to armed forces personnel or those on Coast Guard vessels and helicopters, or adults on school premises or at licensed child care facilities. Nor will it apply to vehicles or watercraft operated by a minor. And substances must not be “readily accessible” to adult drivers or watercraft operators.

Here's what Prime Minister Justin Trudeau told reporters ahead of this morning's Liberal caucus meeting on decriminalization -- and the call for an end to travel restrictions:

And a response from Conservative MP Brad Vis, who referenced the opioid situation in his own riding of Mission—Matsqui—Fraser Canyon:

Subsection 56(1) of the Controlled Drugs and Substances Act (CDSA) allows the government to grant ministerial exemptions from the application of any or all of the provisions of the CDSA, if the exemption is deemed “necessary for a medical or scientific purposes or is otherwise in the public interest.”

The British Columbia provincial government requested an exemption in November 2021, pointing to reduced access to treatment services, continuing stigma, the disproportionate impact of criminal charges against Indigenous and racialized populations, and dangerous new contaminants in the illegal drug market.

B.C. reported nearly 9,400 overdose-related deaths between April 2016, when the province declared a public health emergency, and March 2022.

MPs vote today on a private member's bill on cross-Canada drug decriminalization from NDP MP Gord Johns, who spoke to reporters alongside NDP Leader Jagmeet Singh ahead of the vote.

Watch the full news conference:

In the House

Watch question period, with Prime Minister Justin Trudeau fielding all questions from opposition leaders, critics, and MPs:

Bill C-5 returns to the House of Commons for report-stage debate, including amendments by the justice committee.

Three hours are being set aside this evening to concur a committee report in support of Finland and Sweden's NATO membership.

Votes are scheduled on bills S-211, C-216, C-233, and C-235, plus yesterday's Bloc Québécois motion on the Canada Research Chairs program. 

And MPs debate a private member's bill to create the Ojibway National Urban Park in southwestern Ontario.

In Committee

Natural Resources Minister Jonathan Wilkinson and Labour Minister Seamus O'Regan go before the Standing Committee on Natural Resources for discussion of Canada's transition to a low-carbon economy and what the future holds for energy workers. 

Also at 3:30pm ET / 12:30pm PT:

Tracy Robinson, president and CEO of Canadian National Railway Co., faces questions at the official languages committee. CN has been under fire in Quebec over the lack of francophones and native French speakers among senior executives and board members.

Agricultural groups brief the trade committee on business opportunities in the Indo-Pacific region. 

The heritage committee continues to consider Bill C-11. 

Meanwhile, Justice Minister David Lametti goes before the Senate legal affairs committee to discuss the budget implementation bill. 4:15pm ET / 1:15pm PT

Today in Politics Podcast: Mark Sutcliffe and Dan Leger

The government's new firearms-control bill faces criticism for not doing enough. COVID-19 restrictions at the border are extended, amid outcry over long waits for travel. And British Columbia will become the first province to decriminalize possession of small amounts of illicit drugs for personal use.

Tuesday on PrimeTime Politics: Auditor General Karen Hogan

Auditor General Karen Hogan joined Peter Van Dusen to discuss her latest reports – and her frustration with federal inaction on delays for veterans’ disability benefits and better treatment of Black and Indigenous offenders in the prison system.

Also:

MPs debated the government’s new firearms legislation (Bill C-21): Pam Damoff (Liberal), Raquel Dancho (Conservative), and Alistair MacGregor (NDP).

And journalists Joël-Denis Bellavance (La Presse), John Ivison (National Post), and Tonda MacCharles (Toronto Star) offered their analysis of the latest political headlines.