What Happened in Canada Last Week? BC Flooding

Discover the major Canada news events from last week. From severe flooding in British Columbia to the Bank of Canada’s interest rate decision, defense agreements, and holiday observances, World Report Press brings you comprehensive coverage of the stories shaping Canada in December 2025.

As the holiday season intensifies, Canada faced significant weather challenges, economic resilience amid trade uncertainties, and political milestones during the week of December 8-14. With ongoing concerns over U.S. trade policies, the nation navigated natural disruptions and policy decisions. Here’s a detailed roundup of the top Canada news events last week.

1. Severe Flooding in British Columbia from U.S. Overflow

One of the dominant stories was widespread flooding in Abbotsford and the Sumas Prairie region of British Columbia, caused by overflow from the Nooksack River in Washington state. Heavy rainfall led to inundation along the Trans-Canada Highway, prompting evacuations and road closures. Highway 1 saw partial reopenings by week’s end, but more rain was forecasted, raising ongoing concerns.

This cross-border weather event highlighted vulnerabilities in infrastructure and climate impacts.

2. Bank of Canada Holds Key Interest Rate at 2.25%

On December 10, the Bank of Canada announced it would maintain its policy interest rate at 2.25%, citing the economy’s unexpected resilience despite U.S. tariffs on key sectors like steel, aluminum, autos, and lumber. Governor Tiff Macklem noted that while trade uncertainty weighs on investment, overall growth has held up better than anticipated.

This decision provided stability amid global economic pressures, marking a key moment in Canada economy news December 2025.

3. Canada Joins EU Security Action for Europe Initiative

Canada agreed to participate in the European Union’s Security Action for Europe initiative, enhancing access for Canadian defense firms to EU markets and encouraging European investments in Canada’s defense sector. This move strengthens transatlantic ties and bolsters Canada’s industrial base.

The agreement reflects efforts to diversify partnerships beyond North America.

4. Prime Minister Attends Hanukkah Event and Community Activities

Prime Minister Mark Carney participated in events marking the beginning of Hanukkah on December 14, as well as community initiatives like the Toy Mountain campaign with the Salvation Army on December 13. These appearances underscored holiday spirit and charitable efforts amid a busy political season.

5. Provincial By-Election and Other Developments

A provincial by-election was held in Georgetown-Pownal on December 8. Additionally, discussions continued on economic adjustments to trade shocks, with reports emphasizing Canada’s structural transition and calls for productivity enhancements.

These stories rounded out a week focused on resilience, international cooperation, and seasonal observances.