The latest economic figures suggest ongoing weakness in the Canadian economy, giving the Bank of Canada room to continue cutting interest rates.

The $155-million facility will become the first in North America to manufacture e-compressors, an essential component for electric vehicles.

Ontario sharply lowered its projected deficit for next year, setting the stage for a balanced budget ahead of a possible spring election.

This year's annual target is 125,000 homes, but the government's fall economic statement tabled on Wednesday shows it expects just 81,300, based on an average of private-sector forecasts.

The city will use the funding to upgrade components of the Lively-Walden Wastewater System, and build capacity for more houses.