High Inflation and High Rates: What Businesses should Keep an Eye on

September 13, 2022

By Atul Oka, Senior Director of Strategy and Business Development, DUKE Heights BIA

As interest rates increase in an effort to battle high inflation, Canadian businesses face greater uncertainty. Interest rates can have an impact on a business’s cash flow, ability to borrow, growth strategy, and hiring plans. With the latest increase of seventy-five basis points (0.75%) by the Bank of Canada in September 2022, Canada now has the highest policy interest rate among all G7 countries. The current overnight rate of 3.25% is the highest since 2008, and with an inflation reading of 7.6% in July, the Bank of Canada is expected to keep raising rates until there is a sustained decrease in inflation.

Conversely, these increases while significant, have only been possible because of confidence in the economy’s recovery as evidenced by strong job growth and an unemployment rate at the all-time low of 4.9% (July 2022 reading). In a strategy similar to the one employed by the US Federal Reserve, the Bank of Canada has “front-loaded” the interest rate increases in an effort to reduce overall spending and thus the demand for goods and services.

Because rate changes have a lagging impact, there is now an increased risk of recession should the Bank of Canada continue to raise interest rates at the current pace. The CMHC is currently predicting a recession at the end of 2022. Whether there is a recession or just a slowdown, businesses in Canada will need to understand how the rate environment will impact their business.

The most important impact for many businesses that have taken on a high level of debt during the preceding period of low rates to boost capital investment and growth is their ability to service debt. In addition to higher input costs as a result of inflation and a possible slowdown in demand, businesses now face an increase in the cost of servicing existing debt and a decreased ability to access increased debt. Companies that have low margins and high debt will be hit especially hard by the potential “cash flow crunch”. Managing and forecasting cash flow will thus be critical for many businesses if they are to effectively mitigate this risk.

Wage inflation and the ability to hire new workers in the short term may also impact businesses during the initial interest rate cycle. Over the last two years, many workers left the labour force leaving businesses struggling to fill open positions. This in turn resulted in wage inflation as businesses attempted to retain and grow their headcount. Businesses may therefore continue to face human resource challenges until the labour market cools down which is only expected in late 2022 or 2023 when demand destruction leads to increased layoffs.

Another challenge that not even large international companies like Walmart and Target have been able to successfully manage is forecasting demand and thus inventory. Some businesses may hedge against inflation by accumulating inventory and locking in prices before they increase, or over-order, if supply chains remain unstable, but carrying a large inventory, can tie up precious funds if the inventory cannot be moved at the rate expected. Businesses should be cautious about excess inventory, especially in light of the manufactured slowdown in consumer and corporate demand as a result of higher interest rates.

It is thus important for businesses to incorporate these challenges and risks when creating, evaluating, or adjusting their business plan or strategy.

The DUKE Heights BIA offers free financial planning assistance for members. You can access this service HERE.

Councillor’s Corner- Ward 7 : April 2022

anthony-perruzza

April 13, 2022

Dear Resident,

The Province has lifted its mask mandate in most settings, including indoor public places like retail and restaurants, schools, and child care centres. Mask requirements remain mandatory on public transit, in health and long-term care environments, and other high-risk settings. While the provincial government is on route to lifting requirements in all areas, you can contact my office if you have any inquiries about these policies. I encourage you to think about what’s safest for you, your families, friends, and co-workers.

In addition to in-person counter services, which reopened on February 22, other public areas of City Hall, such as the Etobicoke Civic Centre, have fully reopened. Contact my office if you have any questions.

Along with the reopening of City buildings to the public and staff returning to City work locations, City Council and committee meetings will transition to a hybrid model. Like myself, members of City Council have the option to attend meetings in-person or remotely. Residents can also choose to attend and make deputations either in person or virtually. I look forward to joining more events and City meetings again in person.

The City of Toronto announced its annual hiring campaign for spring and summer parks and recreation jobs to prepare for warmer days ahead and fun activities. As Toronto’s largest recreation program provider, the City employs approximately 9,000 recreation workers, 5,000 of which during the summer season to support community recreation programs. More than 900 seasonal gardeners and park workers are hired each year. Check the City of Toronto’s website to apply.

I want to thank residents for joining the 2801 Jane Street Community Consultation Meeting. Your feedback is crucial. I’m starting a working group for this file so that you can continue to provide your input. I am here to advocate for you and support our community through these processes to achieve the best possible results. Contact my Chief of Staff, Matias de Dovitiis, Matias.deDovitiis@toronto.ca, for the steps to get involved.

If you have questions about other developments, community initiatives or need access to other City resources, please contact me at 416-338-5335 or Councillor_Perruzza@toronto.ca.

For those celebrating: Happy Easter, Ramadan Mubarak, and Happy Ram Navami. Wishing you and your families abiding wellness and prosperity.

For regular news updates, please follow me on Facebook @AnthonyPerruzza, Twitter @PerruzzaTO, Instagram @Perruzza_TO, or subscribe to my regular e-newsletter online by visiting my website anthonyperruzza.com.

Yours Truly,

City Councillor Anthony Perruzza

Ward 7 – Humber River-Black Creek


Councillor’s Corner- Ward 7 : March 2022

anthony-perruzza

March 08, 2022

Dear Resident,

I want to thank the staff and panelists who attended our recent Virtual Principal’s Forum. My office coordinates these events to inform our schools about local projects and services and how they impact and benefit our community. My office welcomed speakers from the City’s Vision Zero Strategy, the Finch West LRT, and the Toronto Public Library to give presentations. Many principals and vice-principals from schools around Black Creek attended. These forums allow for question-and-answer periods, connecting on how we can make progress together. If you want to learn more about this event and what’s next, please contact me.

Over 60 per cent of eligible residents in Toronto have received their third dose of the COVID-19 vaccine. This advancement helped us take more steps along the path of reopening. Vaccination options continue to be available throughout Toronto. All five City-run clinics continue to operate Monday to Friday, from 2 p.m. to 8 p.m., and Saturday and Sunday from 11 a.m. to 5 p.m. for walk-ins and booked appointments. You can book using the provincial system at covid19.ontariohealth.ca or by calling 1-833-943-3900. I will continue to share posts online with the latest pop-up clinics. Most nearby events are hosted by Humber River Hospital or Black Creek Community Health Centre, and I want to commend the staff on their ongoing dedication and leadership to vaccination efforts here in Humber River-Black Creek.

Vaccine Transportation Options

As Toronto’s economy gradually relaunches, the City of Toronto regularly updates a webpage with guidelines and supports for business owners; you can access this list at toronto.ca and type in “business resources” in the search window. Please visit the City of Toronto’s website for news about March Break activities and ongoing details about recreational programs and services. I hope you have a healthy and wonderful time connecting safely with your families.

If you have questions about new developments, community initiatives, or need access to other City resources, please contact me at 416-338-5335 or councillor_perruzza@toronto.ca. Visit the City of Toronto’s website for the most up-to-date instructions related to COVID-19 and booking permits this spring and summer.

For regular updates, please follow me on Facebook @AnthonyPerruzza, Twitter @PerruzzaTO, Instagram @Perruzza_TO, or subscribe to my regular e-newsletter updates online by visiting my website anthonyperruzza.com.

Yours Truly,

City Councillor Anthony Perruzza

Ward 7 – Humber River-Black Creek


Councillor’s Corner- Ward 7 : February 2022

anthony-perruzza

February 10, 2022

Dear Resident,

Team Toronto continues to plan vaccine events and opportunities for you to get vaccinated. For the most up-to-date outline on how and where to book when, please visit covid19.ontariohealth.ca or call 1-833-943-3900. I will continue to share postings online with the latest details on local vaccine pop-up clinics where no appointments are required, and most of these are hosted by Humber River Hospital or Black Creek Community Health Centre.

I’d like to extend my gratitude to Esther Carenza and the Children’s Holiday Get Together and Other Events team for helping connect families in Jane and Finch with toys and food items over the holidays.

For news about winter activities like skating at City of Toronto rinks, including the spots available and safety rules, please visit the City of Toronto’s website. I’ll share any events related to Family Day weekend online, including the current COVID-19 protocol.

For updates about the City of Toronto’s services during the winter and safety tips, including snow removal on streets and salting, please visit the City of Toronto’s website. The City has put out information on how to prevent pipes from freezing, you can visit toronto.ca/frozenpipes for tips. If you have any concerns or need access to resources, please contact 311 Toronto or my office for follow-up. My team and I are here to help you. Seniors looking for further assistance can also reach out to us.

Many thanks to everyone who made the Vax The Northwest mass immunization event a success. Almost 1,700 people attended, let’s keep up the work to make vaccines more accessible for the betterment of everyone’s health.

If you have questions about local developments, community projects or need access to other City-related news, please contact me at 416-338-5335 or councillor_perruzza@toronto.ca. Visit the City of Toronto’s website to confirm the most up-to-date instructions related to COVID-19 guidelines and booking reservations at toronto.ca

For regular updates, please follow me on Facebook @AnthonyPerruzza, Twitter @PerruzzaTO, Instagram @Perruzza_TO, or subscribe to my regular e-newsletter updates online by visiting my website anthonyperruzza.com.

Please be mindful of the weather and stay safe.

Sincerely,

City Councillor Anthony Perruzza

Ward 7 – Humber River-Black Creek


Councillor’s Corner- Ward 7 : January 2022

anthony-perruzza

January 01, 2022

Dear Resident,

As we start 2022, I want to share how important it is to get your booster shot as soon as possible. For the most up-to-date information on how and where to book, please  call 1-833-943-3900. City-run clinics are easily accessible by transit and offer free parking. The clinic staff provide resources in multiple languages. A person with a vaccination appointment can also bring a support person to help with translation. While there are no walk-in appointments at City-run vaccination clinics, I will continue to share the details about nearby pop-up vaccine clinics via social media and on my website at www.anthonyperruzza.com.

Due to the ongoing surge in Omicron COVID-19 cases, Ontario has entered a Modified Step 2 reopening stage under the Reopening Ontario Act. Social gatherings have been reduced to five people indoors and ten people outdoors. Retail settings are permitted at 50 percent capacity. In line-ups, physical distancing is required, and food courts are closed in shopping malls. Indoor dining is cancelled, but you can order take-out from restaurants and bars. I encourage residents to consider supporting local establishments here in Humber River-Black Creek. Indoor recreational facilities are closed until the Province issues further notice, and I will outline how that impacts City of Toronto programming below. For more information about current restrictions, please contact me at 416-338-5335 or councillor_perruzza@toronto.ca, and my team and I will provide the latest news from all levels of government.

Restrictions cancel all City of Toronto indoor recreational programming and facility bookings like arena permits and indoor drop-in classes. The After-School Recreation & Care program (ARC) is suspended until in-person learning resumes. Refunds have and will be issued to all impacted clients automatically.

Services that are not impacted include:
· Access to outdoor rinks
· Outdoor learn-to-skate and ski operations
· Passive Use of parks and outdoor amenities
· Access to Community Recreation Centres, pools, and arenas for:

  1. Social services, counselling, washroom use, etc.
  2. Childcare services, where applicable
  3. Use by National Athletes, as part of Team Canada, etc.
  4. Physical therapy, as prescribed by a medical practitioner
  5. Outdoor animal displays like High Park Zoo/Riverdale Farm

For updates about the City of Toronto’s adjusted services during the winter and safety tips, including snow removal on streets and salting, please visit the City of Toronto’s website. If you have any concerns or need access to resources, please get in touch with 311 Toronto or contact my office for a follow-up. We are here to help you. Seniors looking for further assistance can also reach out to us.

Many thanks to everyone who attended MPP Tom Rakocevic and my office’s joint Holiday Meal and Toy Pick-up event at Christian Centre Church. Inner City Outreach, the Ghanaian Canadian Association of Ontario, Kitchen24, the Vietnamese Association, Tyler Downey Seiu, UFCW Locals 175 & 633, the Good Vibes Foundation, Jobify, and many more participated and supported. We were able to reach many local children and their families.

For regular updates, please follow me on Facebook @AnthonyPerruzza, Twitter @PerruzzaTO, Instagram @Perruzza_TO, or subscribe to my regular e-newsletter updates online by visiting my website www.anthonyperruzza.com.

Please be mindful of the weather and stay safe.

Sincerely,

Sincerely,

City Councillor Anthony Perruzza

Ward 7 – Humber River-Black Creek


Councillor’s Corner- Ward 7 : December 2021

anthony-perruzza

December 07, 2021

Dear Resident,

As we approach the end of 2021, I want to recognize our COVID-19 vaccine efforts in Humber River-Black Creek. Specifically, I want to highlight health organizations like Black Creek Community Health Centre, Humber River Hospital, the City of Toronto’s Public Health staff, religious institutions, schools, and many more that have done an incredible job of pulling together various campaigns to get everyone vaccinated. This public health accomplishment inspires hope as we continue to recover and work towards a better future together. Our health must remain a top priority both personally, at home, and publicly where we share spaces with others.

Team Toronto’s vaccine rollout for children ages 5-11 includes educational resources for families and other supports. This plan consists of school-based clinics in 30 Toronto neighbourhoods over the month, pending further updates. Team Toronto partners include Toronto Public Health and four school boards. In addition to school-based clinics, 450 pharmacies and many fixed sites, including 5 City-run locations, will be offering the vaccine. Parents can call my office anytime for support.

In line with the Province’s easing of capacity restrictions in sport and recreation facilities, online reservations for City of Toronto fitness centres, weight rooms, indoor playgrounds, and drop-in leisure swim have been lifted. Reservations will continue to be available for lane swimming and Aquafit, and additional walk-in spaces will be added. For more details on the spots available and the rules, including those around skating rinks, visit the City of Toronto’s website.

One of my recent site visits at St. Jane Frances Catholic School to discuss traffic safety improvements for students and their families. I want to thank the school’s staff and 31 Division for their ongoing work and presence.

During the holiday season, it’s best to continue taking extra precautions for our collective well-being, especially if we plan to see some family and friends again. Monitor your health and follow all public health guidelines. If you have any questions, you can always contact my office for answers.

From my family to yours, I wish you a pleasant and joyful holiday season. Merry Christmas!

If you have questions about local developments, community projects, or need access to other City-related information, please contact me at 416-338-5335 or councillor_perruzza@toronto.ca. Visit the City of Toronto’s website to confirm the most up-to-date instructions related to COVID-19 protocol and booking reservations at www.toronto.ca/

For regular updates, please follow me on Facebook @AnthonyPerruzza, Twitter @PerruzzaTO, Instagram @Perruzza_TO, or subscribe to my regular e-newsletter updates online by visiting my website www.anthonyperruzza.com

Sincerely,

City Councillor Anthony Perruzza

Ward 7 – Humber River-Black Creek


Councillor’s Corner- Ward 7 : November 2021

anthony-perruzza

November 09, 2021

Dear Resident,

Let’s work together to keep our area clean. With the fall weather upon us, here are some reminders and tips from the City’s Solid Waste Department:

  • Garbage, recycling and yard waste are collected on Wednesdays, alternating between weeks.
  • The City picks up yard waste every other week on garbage collection days from mid-March to mid-December and Christmas trees in January. You can also take yard waste to one of the City’s Drop-Off Depots year-round. The collected yard waste is turned into compost, which is offered to the public for free at Community Environment Days, which I host every year. The City’s yard waste program diverts approximately 90,000 tonnes of yard waste from landfills each year. Learn more at toronto.ca/yardwaste
  • You can make old new again. Find out where to donate and buy used clothing, textiles, housewares, furniture, and more. Donate and learn different ways to reduce waste at toronto.ca/reuseit
  • More than 50% of food waste generated in Toronto households is avoidable. Reducing your food waste at home can help you save money and the environment. Learn more ways to reduce food waste at toronto.ca/foodwaste
  • To dispose of larger items, or if you have other questions please call 311 Toronto, download the TOwaste app on your smartphone or visit toronto.ca/waste-wizard
  • If you have inquiries about local developments, community projects or need access to other City-related information, please contact me at 416-338-5335 or councillor_perruzza@toronto.ca. Visit the City of Toronto’s website to confirm the most up-to-date instructions related to COVID-19 protocol and booking reservations at www.toronto.ca

    For regular updates, please follow me on Facebook @AnthonyPerruzza, Twitter @PerruzzaTO, Instagram @Perruzza_TO, or subscribe to my regular e-newsletter updates online by visiting my website www.anthonyperruzza.com

Sincerely,

City Councillor Anthony Perruzza

Ward 7 – Humber River-Black Creek


Councillor’s Corner- Ward 7 : October 2021

anthony-perruzza

October 12, 2021

Dear Resident,

All Toronto Public Library branches offer the public an opportunity to access and print their vaccination records free of charge. There are also various ways of storing your information on your smartphone for safe, secure and convenient retrieval by downloading the Ministry of Health receipts online. If you have any questions, you can visit Public Health Ontario at https://covid-19.ontario.ca/proof-covid-19-vaccination or call 1-833-943-3900 for additional support.

Fall recreational programming at the City of Toronto begins October 16, and more holiday-themed choices start in December. Weekly group classes and workshops are available for all ages, including arts, fitness and wellness, general interest, skating, sports, swimming, and virtual options.

Public health measures such as screening, contract tracing, masking, physical distancing, and capacity restrictions continue. Visit the City of Toronto’s website to confirm the most up-to-date instructions related to COVID-19 protocol and booking reservations at https://www.toronto.ca/

If you have questions about local developments, projects or need access to other City updates, please contact me at 416-338-5335 or councillor_perruzza@toronto.ca.

Property Tax & Water Bill Rebate Programs:

Every year my office hosts Property Tax & Water Bill Rebate clinics to help seniors and those with disabilities fill out applications for these programs. Due to COVID-19, this year will be different.

Please call my office to set up a one-on-one appointment at (416) 338-5335 or email councillor_perruzza@toronto.ca.

The deadline to apply for the Property Tax, Water Bill, and Solid Waste Relief programs is October 29, 2020. Please confirm which ID you need to bring with you to your appointment.

If you have questions about local developments, community projects or need access to other City-related information, please contact me at 416-338-5335 or councillor_perruzza@toronto.ca.

For regular updates, please follow me on Facebook @AnthonyPerruzza, Twitter @PerruzzaTO, Instagram @Perruzza_TO, or subscribe to my regular e-newsletter updates online by visiting my website.

Sincerely,

City Councillor Anthony Perruzza

Ward 7 – Humber River-Black Creek


Councillor’s Corner – Ward 6 : September 2021

james-pasternak

September 14, 2021

Dear friends,

It’s September and that means going “Back to School” for students across the country. Not only is this year’s back to school significant to students and parents, but it is also an important time for businesses in our city as well.

Offices are beginning to open up, more restaurants and shops are expanding services and hours of operations, and our economy is beginning to work its way back to pre-pandemic levels.

Our office has been focused on ensuring students are supported in restarting their schooling this year, given the many challenges they face. That is why we were excited to host our latest “Back to School” event at Downsview Park this past week, where we provided free ice cream, backpacks for students, and a vaccination opportunity for anyone who wanted it.

It was incredibly successful, attracting over 700 people throughout the day!
We were lucky to partner with Duke Heights BIA in giving away 300 backpacks with stationaries to deserving students starting the school year. Lastly, our vaccine clinic, hosted by Humber River Hospital, vaccinated over 70 students and their family members in advance of the school year.

We look forward to continuing our work with the Duke Heights BIA in supporting local businesses and the community in the months and years to come, as we continue our recovery.

Please don’t hesitate to reach out to our office with any questions or concerns.

Looking forward to seeing you all soon,

Councillor James Pasternak
Ward 6 –Downsview – York Centre

Councillor’s Corner- Ward 7 : September 2021

anthony-perruzza

September 14, 2021

Dear Resident,

Many families were looking forward to the new school year, but many are uneasy given the ongoing circumstances facing the pandemic. The plans announced by the Ministry of Education will continue to develop, and I will continue to share updates with you. As the Poverty Reduction Advocate for the City of Toronto and as a parent, I listen and advocate for better health and safety standards. Our schools need to be able to hire more custodians, nurses, teachers, and other staff to support our children and each other through this process.

This month, you can continue to access community centres for heat relief and drop-in sports. Visit the City of Toronto’s website to confirm the most up-to-date instructions related to COVID-19 protocol and book reservations for City programming. https://www.toronto.ca/

Remember to stay safe and continue to follow all public health guidelines. Please get both vaccines; there are pop-up clinics available in our community to serve you.

Property Tax & Water Bill Rebate Programs:

Every year my office hosts Property Tax & Water Bill Rebate clinics to help seniors and those with disabilities fill out applications for these programs. Due to COVID-19, this year will be different.

Please call my office to set up a one-on-one appointment at (416) 338-5335 or email councillor_perruzza@toronto.ca.

The deadline to apply for the Property Tax, Water Bill, and Solid Waste Relief programs is October 29, 2020. Please confirm which ID you need to bring with you to your appointment.

If you have questions about local developments, community projects or need access to other City-related information, please contact me at 416-338-5335 or councillor_perruzza@toronto.ca.

For regular updates, please follow me on Facebook @AnthonyPerruzza, Twitter @PerruzzaTO, Instagram @Perruzza_TO, or subscribe to my regular e-newsletter updates online by visiting my website.

Sincerely,

City Councillor Anthony Perruzza

Ward 7 – Humber River-Black Creek