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Apr 16, 2014

Bank of Canada keeps rates steady, warns of weak inflation

OTTAWA, April 16 (Reuters) – The Bank of Canada signaled its
continuing concern about weak inflation on Wednesday,
maintaining its neutral stance on interest rates and suggesting
it will ignore a faster than expected rise in headline inflation
because the rise will mainly reflect temporary price increases
in volatile items.

The central bank held its benchmark interest rate at 1
percent, as expected, extending a 3-1/2 year freeze on borrowing
costs.

Apr 15, 2014

Canada Feb factory sales jump on autos, energy products

OTTAWA, April 15 (Reuters) – Canadian manufacturing sales in
February jumped to the highest level since their pre-recession
peak in July 2008, but volumes were more modest and pointed to
slower economic growth than in January.

Sales gained 1.4 percent versus expectations for a 1.0
percent increase, helped by higher auto industry sales and by
higher energy prices, Statistics Canada data showed on Tuesday.
Statscan revised down January’s sales increase to 0.8 percent
from 1.5 percent, however.

Apr 14, 2014

Canada watchdog offers rules to cut mortgage insurance risk

OTTAWA, April 14 (Reuters) – Canada’s financial regulator
issued draft guidelines on Monday for mortgage insurers to
reduce risk in the housing market, a move analysts said could
make it slightly harder for home buyers to get a loan.

The Office of the Superintendent of Financial Institutions
(OSFI) guidelines apply to the country’s three mortgage
insurance companies: the state-owned Canada Mortgage and Housing
Corp (CMHC), which insures 70 percent of residential mortgages
in the country, and private companies Genworth MI Canada
and Canada Guaranty.

Apr 14, 2014

‘Heartbleed’ blamed in attack on Canada tax agency, more expected

BOSTON/OTTAWA (Reuters) – Canada’s tax-collection agency on Monday said the private information of about 900 people had been compromised as hackers exploited the “Heartbleed” bug, and security experts warned that more attacks are likely to follow.

The breach allowed hackers to extract social insurance numbers, which are used for employment and gaining access to government benefits, and possibly some other data, the Canada Revenue Agency said.

Apr 11, 2014

Bank of Canada’s Poloz eyeing global deflationary risk

WASHINGTON (Reuters) – Policymakers are closely watching the risk of deflation in several advanced economies but they are encouraged by signs of a continuing improvements in the economic outlook, Bank of Canada Governor Stephen Poloz said on Friday.

While not talking specifically about Canada, where inflation has been below the central bank’s 2 percent target for nearly two years, Poloz’s comments shed some light on his thinking about a top concern domestically ahead of the bank’s next interest rate decision on Wednesday.

Apr 11, 2014

G20 gives U.S. year-end deadline for IMF reforms

WASHINGTON (Reuters) – Finance chiefs from around the globe on Friday gave the United States until year-end to ratify long-delayed reforms to the International Monetary Fund and threatened to move forward without it if it fails to do so.

The inability to proceed with giving emerging markets a more powerful voice at the IMF and shoring up the lender’s resources appeared the most contentious issue for officials from the Group of 20 leading economies and the representatives for all IMF member nations who met with them.

Apr 10, 2014

Canada Finance Minister Flaherty ruffled feathers, tackled crisis

OTTAWA/TORONTO (Reuters) – Jim Flaherty, who died on Thursday less than a month after stepping down from his post as Canada’s finance minister, was a straight talker who shepherded the country’s economy through a global financial crisis, and quit shortly after laying out a plan to reach his goal of balancing the government’s budget.

Flaherty, 64, died peacefully in Ottawa, his family said in a statement.

He had been suffering from a rare skin disease when he resigned on March 18, but he denied at the time his decision had anything to do with his health.

Apr 9, 2014

Bank of Canada to keep rates steady next week; hike in third quarter 2015

OTTAWA (Reuters) – The Bank of Canada is unlikely to raise interest rates until the third quarter of 2015, possibly later than the U.S. central bank, and will stick to a staunchly neutral stance in its policy statement next week, a Reuters poll of analysts showed on Wednesday.

The Canadian central bank may forecast a slightly higher profile for inflation in its quarterly Monetary Policy Report (MPR) on April 16, and it may sound upbeat about the positive effects on Canada of a strengthening U.S. economy.

Apr 7, 2014

Canada businesses see weaker currency lifting costs -poll

OTTAWA, April 7 (Reuters) – Canadian businesses widely
expect their input costs to rise as a result of the weaker
Canadian dollar, but they’re not always able to pass on those
higher costs to consumers because of intense competition, a
central bank survey showed on Monday.

The currency has weakened significantly since the Bank of
Canada stopped hinting at eventual interest rate hikes last
autumn because of its worries over slow inflation.

Apr 4, 2014

Canada creates 43,000 jobs in March, mostly part-time

OTTAWA, April 4 (Reuters) – Canada’s economy created twice
as many jobs as expected in March and the unemployment rate
dropped for the first time this year, but private-sector and
full-time hiring remained weak in a sign businesses remain
cautious amid a slack economy.

The report adds to recent data showing the economy is
strengthening after a weak path in December and at the start of
2014, but is unlikely to knock the Bank of Canada off its
neutral stance on interest rates, analysts said.

    • About Louise

      "I cover Canadian economic news, central banking and politics. I am based in Ottawa and have been in my current role since 2006. Before that, I wrote about Latin America from Buenos Aires and Santiago, Chile."
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