OTTAWA, Dec 10 (Reuters) – Soaring consumer debt and a
robust housing market pose an “elevated” risk to Canada’s
financial stability, but the overall level of danger has fallen
from six months ago, the Bank of Canada said on Tuesday.
“In Canada, the high level of household debt and imbalances
in the housing sector are the most significant domestic
vulnerabilities to address,” the central bank said in its
semi-annual Financial System Review.
OTTAWA, Dec 5 (Reuters) – Bank of Canada Senior Deputy
Governor Tiff Macklem is resigning in May 2014 to become dean of
a business school in Toronto, the central bank said on Thursday,
some six months after Macklem was passed over for the job of
Macklem had been widely seen as the front-running candidate
to replace Mark Carney as governor at the Bank of Canada, but in
May the government appointed another prominent economist,
Stephen Poloz, instead. Poloz took over in June.
OTTAWA, Dec 4 (Reuters) – The Bank of Canada held its
overnight interest rate steady on Wednesday, but sounded a touch
more dovish in its outlook, saying the risks of undesirably weak
inflation appeared greater than they did six weeks ago.
The change in tone knocked the Canadian dollar to
its weakest level in three years. Traders slightly increased
bets on the possibility of a rate cut in late 2014, though they
are still pricing in less than a 25 percent chance of this
OTTAWA, Nov 29 (Reuters) – Canada’s economy picked up speed
in the third quarter to grow at the fastest pace in two years
but questions remain about the underlying strength in the
economy and the Bank of Canada is seen keeping interest rates on
hold until well into 2015.
Real gross domestic product grew 2.7 percent, annualized, in
the July-September period, driven mainly by consumer spending
and business inventory accumulation, while there were also signs
of a rebound in business investment.
Nov 28 (Reuters) – The Canadian province of Quebec will
eliminate its budget deficit two years later than promised, the
government said on Thursday, citing weak growth and
Quebec had projected a balanced budget in the current
2013-14 fiscal year, but now expects a return to balanced books
in 2015-16, Nicolas Marceau, the provincial finance minister,
said as he released an update to the fiscal outlook.
OTTAWA, Nov 25 (Reuters) – Canada’s housing market still
needs to be closely monitored for signs of overheating but the
country’s banking regulator has no immediate plans to change its
rules to help cool the market, its top executive said on Monday.
Housing prices and mortgage debt in Canada have soared in
recent years due to record-low borrowing costs, a trend many
consider dangerous because of the risk it could end in a
OTTAWA (Reuters) – Bank of Canada Governor Stephen Poloz said on Wednesday the central bank’s economic analysis differs from that of the Organization of Economic Cooperation and Development (OECD), which recommended it start raising interest rates as soon as 2014.
The OECD said in a report this week that as Canada’s economic slack is absorbed, “monetary stimulus will need to be progressively withdrawn from late 2014 to counter inflationary pressures.”
OTTAWA, Nov 20 (Reuters) – Bank of Canada Governor Stephen
Poloz emphasized weak inflation and growth as top concerns on
Wednesday and signaled he differed with the Organisation of
Economic Co-operation and Development’s suggestion that he
should start raising interest rates as soon as late 2014.
“The most important uncertainty, as I’ve highlighted here,
is how much of an output gap is there, how much capacity is
there in the economy,” Poloz told a Canadian Senate committee.
OTTAWA, Nov 15 (Reuters) – Canadian manufacturing sales
jumped in September to their highest since June 2012 on strength
in the auto and food industries, an encouraging sign that the
hard-hit sector may be rebounding and contributing to speedier
Manufacturing sales grew 0.6 percent in the month, slightly
above the 0.5 percent gain forecast by market operators, to
C$49.9 billion ($47.5 billion). Sales were flat in August.
OTTAWA (Reuters) – Canada’s thriving oil and gas industry helped the economy grow by 0.3 percent in August from July, Statistics Canada said on Thursday, confirming modest growth that is expected to keep the Bank of Canada’s monetary policy on hold for more than a year.
The main contributor to growth in August was mining and oil and gas extraction, with accommodation and food industries, real estate services and agriculture and forestry also providing support. Manufacturing shrank and construction was flat.