We’ve come a long way since the 8.1% annual inflation rate seen in June, but if you ask the Bank of Canada (BoC), the economy still has some way to go. 

Driving the news: The BoC hiked its base interest rate by half a percentage point (to 4.25%). Another hike was pretty much guaranteed thanks to strong US economic data and inflation holding steady at 6.9% in Canada as of last month, but financial markets had anticipated a 0.25-point bump.

• The BoC took a softer tone about future hikes, however, shifting from past assertions that increases were “expected” to come, to say it would be now “considering” them.

Why it matters: Canadian interest rates are sitting at their highest level since 2008, but our central bank is the first of the G10 to indicate it’s ready to pause on future hikes (after being early out of the gate to hike rates in the first place). 

• There is evidence that high interest rates are starting to cool demand and the BoC expects it to slow even more into early 2023.
   
• Canada’s economy grew faster than expected last quarter, but household spending has dropped and home prices have been falling since March. 

Zoom out: If the US Federal Reserve follows suit next week, it’ll signal to the rest of the world’s central banks that it might be time to change course, too.

China roll backs Covid Zero. In response to ongoing protests and a crippling economy, China has taken away Covid testing requirements for public places, local officials are no longer allowed to lock down full neighbourhoods arbitrarily, and Covid patients with mild symptoms can now isolate at home. (WSJ)

There have never been so many renters in Canada. Though two-thirds of Canadian households owned their home in 2021, renters have increased at three times the rate of homeowners in the past decade. According to the 2021 Census, 900,000 more households rent their home today than in 2011. (RBC)

Peru’s president is impeached and arrested. President Pedro Castillo announced he would dissolve the Peruvian Congress mere hours before it was set to begin impeachment proceedings against him. The move was seen as a blatant attempt at a coup d'etat. Congress ignored this decree and impeached him anyway. (CNN)

GoodLeaf, a Guelph-based indoor farm, raised $150M from McCain and Québec insurer Power Corp to expand into a national brand, per the Financial Post. 

Driving the news: The move is a bet by two major companies on the potential of vertical farming, in which crops are grown in warehouses, stacked atop each other, using LED light. The technique allows for acres worth of crops to be grown in relatively small indoor spaces and closer to urban centres.

• It also allows quick and year-round access to fresh produce, which is currently sourced from places like California or Mexico.  

Why it matters: Some experts say vertical farming is the key to boosting Canada’s food supply, much like how the Netherlands became the world’s second-largest food exporter by value (despite being ~240 times smaller than Canada) by investing in the same techniques.

• Critics, however, have slammed vertical farming as a not-yet viable solution in Canada, pointing out its extensive costs and high energy use. 

Bottom line: If we've learned anything from the ongoing lettuce shortage, it's that Canada’s food supply is highly dependent on other places. Vertical farming offers a solution to potential future disruptions.

Global semiconductor chip leader TSMC boosts an investment in Arizona to US$40B to build two new factories that will produce its cutting-edge chips. 

NRG Energy buys smart home company Vivint for US$2.8B as it looks to continue diversifying its revenue streams and push into the consumer market. 

Québec pledges $650M to put 30% of its land and sea under conservation by 2030, meeting a proposed UN target under consideration at COP15 in Montréal.

Caisse de dépôt et placement du Québec increases its stake in Québec private construction company Pomerlau by $150M as part of an expansion.

Toronto delivery services startup GoBolt raises $75M to refine its logistics software, invest in automation, and carry out 90% of its deliveries with EVs.

Canada has dreams of becoming a key player in the electric vehicle (EV) battery supply chain and has invested billions into the domestic mining of critical minerals to help make it a reality. 

Driving the news: But a new report from the University of Calgary points out that Canada’s ambitions might be far-fetched. With less than 5% of proven critical mineral reserves needed for the global energy transition, regions like South America, Africa, Australia, and China might take centre stage. 

• Canada holds about 2.1% of the world’s proven nickel reserves, while Indonesia and Australia account for 22% each. For cobalt, Canada has 2.9% of reserves, while DR Congo has 46%. And when it comes to lithium, an essential mineral for EV batteries, 58% of known reserves are located in Bolivia, Argentina and Chile, compared with 2.5% in Canada. 

Yes, but: The report only captures data about proven reserves (which is to say, they are ready to be mined). The federal government argues this doesn’t present the true scope of Canada’s mining potential, which is yet to be tapped. 

Why it matters: Canada’s proven reserves might be small, but they aren’t insignificant. As the country seeks out foreign investment (though not from China), it could still carve out a role as a small critical minerals provider. 

😓 41%. Canadians planning to take up side hustles, like dog walking or babysitting, to earn some extra scratch in the face of a pricy holiday season.

✈️ 50. Embraer E-195 jets that Porter Airlines will add to its fleet by 2024. The first of these Brazilian-made jets are expected to arrive sometime this month. 

💉 $1 billion. The value of Covid vaccines Canada will throw out before year’s end, with tens of millions of doses expiring before they could be injected. 

• Think creating your will means spending hours with a pricey lawyer? Create a legal will online in 20 minutes for a fraction of the cost. Try Willful today.*

• The Royal Canadian Mint unveiled a new toonie honouring Queen Elizabeth II with a black ring.
   
• Map: The countries with the highest inflation.

• Read: Inside the world of Dubai drug smuggling.

• Six non-traditional ideas for this year’s office holiday party.

• Watch: Why is one specific type of wild rice outrageously expensive?

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