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Notre-Dame Cathedral Reborn: A Testament to Resilience and Restoration

  After five years of meticulous reconstruction, the iconic Notre-Dame Cathedral is set to reopen its doors to the public on December 8, 2024. The reopening ceremony will take place on December 7, marking a significant milestone in the cathedral's history. The fire on April 15, 2019, caused extensive damage to the historic cathedral, collapsing its iconic spire and causing significant harm to its roof, stained-glass windows, and interior artworks. Despite initial doubts and estimates that the restoration could take up to 40 years, French President Emmanuel Macron's ambitious goal to complete the reconstruction within five years has been achieved. The restoration project, costing around $737 million, was funded by donations from 340,000 individuals across 150 countries. The project involved the efforts of 2,000 artisans and 250 companies, who worked tirelessly to restore the cathedral to its former glory. The new roof and spire have been built using 1,500 trees, including the ta...
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Navigating the Hurdle: Bank of Canada’s Dilemma on Rate Cuts

                                     Bank of Canada

The Bank of Canada’s June 5 interest rate call is approaching, and with it comes the tantalizing possibility of a first interest rate cut in over four years. However, there are still hurdles to clear before the central bank can pull the trigger, as one Big Six bank economist argues.

After blockbuster April jobs numbers left markets second-guessing the wisdom of calls for a June rate trim, attention shifted to Canada’s May 21 consumer price index (CPI) report. Many consider this report key to the next rate decision. Bank of Montreal’s chief economist, Douglas Porter, called the backpedaling on a June cut “kneejerk,” acknowledging that the surprise addition of 90,000 new jobs “will give the bank some pause.”

However, Porter is wary of placing too much importance on one “lone” CPI report. He points out that U.S. inflation poses a significant hurdle for the Bank of Canada and rate cuts. Recently, U.S. inflation has accelerated, causing markets to erase almost all Federal Reserve interest rate cuts for 2024, except for possibly one in December. Core prices (excluding food and energy) rose 0.4% from February to March, maintaining an accelerated pace. Measured year-over-year, core prices were up 3.8%, unchanged from the rise in February. The Fed closely tracks core prices because they provide insight into where inflation is headed.

Bank of Montreal expects overall inflation to come in at 0.4% month over month for April, matching last month’s results. Core inflation, excluding food and energy, is projected to rise 0.3% in April from March. Economist Claire Fan at Royal Bank of Canada anticipates some slowing in U.S. inflation, calling for year-over-year core price growth to decelerate to 3.6% from 3.8% in March. However, she emphasizes that it will take more than one softer price report to calm inflation fears.

Looking at U.S. inflation through a wider lens, Derek Holt, an economist at Bank of Nova Scotia, notes that core, month-over-month U.S. inflation is running at a “too hot” four percent annualized.

In summary, while the Bank of Canada contemplates rate cuts, it must navigate the challenge posed by U.S. inflation. The upcoming CPI report will be closely watched, but the broader economic context remains critical for informed decisions.


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