Dear valued client,
Canadians let out a sigh of relief this week when the Bank of Canada decided to hold interest rates steady at 5% for the fourth consecutive time. It also shifted away from notions of further rate hikes and offered hope of possible rate cuts in the first half of 2024. This is, of course, dependent on incoming economic data in the interim.
In more Canadian news, in an attempt to address the strain on housing and healthcare, Immigration Minister Marc Miller has implemented a two-year cap on student visas, potentially resulting in a 50 percent reduction in international students in certain areas. While economists generally support the move, citing the inability of the economy to absorb increasing newcomers, the policy will impact the financial health of universities and colleges dependent on international student fees. Minister Miller’s announcement outlined changes designed to halt the growth of the foreign study visa program, targeting private colleges accused of producing graduates at an unsustainable rate and offering subpar education. However, universities heavily dependent on foreign student tuition will not be pleased with this development.
Lastly, and probably most importantly, a Federal Court judge declared on Tuesday that the Trudeau Liberals breached the Charter of Rights and Freedoms by utilizing the Emergencies Act to dismantle the anti-mandate Freedom Convoy blockades in 2022. This is yet another hit for Trudeau’s camp as his party continues to sink in the polls. The judge, Justice Richard Mosley, asserted that the government’s action did not meet the Emergencies Act’s criteria, which requires a response to an event seriously threatening Canada’s sovereignty, security, or territorial integrity. Despite initially leaning toward ruling in favor of the government, Mosley’s perspective shifted after considering evidence and submissions from public interest litigants—the Canadian Civil Liberties Association and the Canadian Constitution Foundation. The Federal Court found the government’s use of the Emergencies Act unjustified and unreasonable, emphasizing the failure to demonstrate a genuine emergency as defined by the Act. While the decision brought relief to Freedom Convoyers, the government plans to appeal the ruling to the Supreme Court. Time will tell if the Supreme Court is of the same opinion.
I’d like to leave you with a passage from Dr. Becky Kennedy, a child psychologist and author of “Good Inside.” She makes the paradoxical point that if you want to raise happy kids, you don’t try to make them happy. You try to make them resilient and self-aware. She writes, speaking of both children and parents, “The wider the range of feelings we can regulate—if we can manage the frustration, disappointment, envy, and sadness—the more space we have to cultivate happiness. Regulating our emotions essentially develops a cushion around those feelings, softening them and preventing them from consuming the entire jar. Regulation first, happiness second.”
Have a terrific weekend,
PW
