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Channel Tunnel Chaos Enters Day Two as Power Fault Drags On

The disruption, caused by a fault in the system's overhead power supply, on Tuesday upended plans for thousands of passengers in London, Paris, Brussels and Amsterdam. Rail passengers travelling between the UK and mainland Europe are enduring a second day of major disruption after a power failure shut down the Channel Tunnel, halting both Eurostar and LeShuttle services. The fault, linked to the overhead power supply, brought traffic to a standstill and left thousands of travellers stranded on both sides of the Channel. Although some services have begun to move again, operators warn that delays and cancellations will continue while engineers work to stabilise the system. Eurostar has urged passengers to avoid travelling unless essential, as many trains remain suspended or heavily delayed. LeShuttle customers are also facing long queues, with significant backlogs reported at both Folkestone and Calais. The timing has added to the frustration, hitting one of the busiest travel per...
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Bank of Canada Holds Key Interest Rate at 5% Amid Speculation of a June Cut

 



The Bank of Canada (BoC) has maintained its benchmark interest rate at 5% in its third update of the year. However, the central bank has hinted that a rate cut in June is “within the realm of possibilities.” Governor Tiff Macklem emphasized the need for sustained progress on inflation before any decisive action is taken.

Recent data has fueled speculation about a potential rate cut. Notably, core inflation has eased, and the jobs market has stalled. While the BoC expects core inflation to continue its gradual decline, rising gas prices may keep the Consumer Price Index (CPI) hovering around 3% in the coming months.

Governor Macklem emphasized that the central bank will closely monitor inflation trends. The decline in core inflation must be more than a temporary blip to warrant a rate cut. The BoC seeks assurance that this downward trend is sustainable.

Analysts surveyed by Reuters had anticipated the BoC’s decision to maintain the key overnight rate at 5% for the sixth consecutive meeting. However, recent developments have shifted expectations. BMO Capital Markets’ Canadian rates and macro strategist, Benjamin Reitzes, described the BoC’s statement as “mildly more dovish.” While June remains a possibility, the upcoming CPI reports will play a crucial role in shaping the central bank’s next move.

In summary, the Bank of Canada’s decision to hold the rate steady reflects cautious optimism. As we approach June, all eyes will be on inflation indicators, determining whether the path to price stability warrants a rate adjustment. 

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