OTTAWA (Reuters) – The Bank of Canada held its benchmark interest rate at 1 percent on Wednesday, but it revised its guidance dramatically to say that excess capacity in the economy, soft inflation and stabilizing household debt have combined to push any rate increase further away than previously thought.
Governor Mark Carney has been the most hawkish central banker in the Group of Seven (G7) major industrial economies for several months, but he has steadily been watering down his guidance on the need to start raising rates.
OTTAWA, Jan 23 (Reuters) – The Bank of Canada held its
overnight interest rate at 1 percent on Wednesday but
dramatically revised its projections to say any hike would be
further away than previously thought, because of excess
capacity, soft inflation and stabilizing household debt.
“While some modest withdrawal of monetary policy stimulus
will likely be required over time, consistent with achieving the
2 percent inflation target, the more muted inflation outlook and
the beginnings of a more constructive evolution of imbalances in
the household sector suggest that the timing of any such
withdrawal is less imminent than previously anticipated,” said
the central bank, led by Mark Carney.
OTTAWA, Jan 16 (Reuters) – Canada’s finance minister will
interview candidates for governor of the Bank of Canada, his
office said on Wednesday in an unusual announcement that
highlights the central role the minister intends to play in the
Mark Carney is stepping down as governor of the Bank of
Canada in June to head the Bank of England, and the process of
finding his replacement is under way. Tiff Macklem, currently
the senior deputy governor, is considered the front runner.
OTTAWA, Jan 16 (Reuters) – Canada’s Conservative government
does not expect to launch a new round of fiscal stimulus despite
the possibility of weaker-than-expected growth in the first
quarter, Finance Minister Jim Flaherty said on Wednesday.
“I don’t see the need for it, quite frankly. I think we have
adequate economic growth, and I think the prospects for stronger
economic growth later in the year and next year are good,”
Flaherty told a news conference.
OTTAWA, Jan 10 (Reuters) – The man tipped to be the next
governor of Canada’s central bank has the reputation of being a
mild-mannered sideman to charismatic bank chief Mark Carney, but
former colleagues say Tiff Macklem is a mover and shaker in his
own quiet way.
As Carney prepares to leave the Bank of Canada to start his
new job as head of the Bank of England on July 1, Macklem, his
No. 2, has emerged as the frontrunner to succeed him.
OTTAWA, Jan 4 (Reuters) – Canada’s prime minister will meet
with native leaders next week to discuss social and economic
issues, an olive branch to an angry aboriginal movement that has
blockaded rail lines and threatened to close Canada’s borders
with the United States.
Stephen Harper made no mention of the aboriginal protests in
a statement announcing the Jan. 11 meeting.
OTTAWA (Reuters) – Canada’s economy created far more jobs than expected in December, defying economic growth that remained sluggish and bolstering the likelihood of a central bank interest rate hike later this year.
The economy added 39,800 jobs in December from November, Statistics Canada said on Friday, well above market expectations for 5,000 jobs and surpassing even the most bullish prediction in a Reuters poll of analysts.
OTTAWA, Jan 4 (Reuters) – Canada’s economy created far more
jobs than expected in December, defying expectations amid
sluggish growth and fears about the U.S. “fiscal cliff” and
increasing the likelihood of a central bank rate hike this year.
The economy added 39,800 jobs in December from November,
Statistics Canada said on Friday, well above market expectations
for 5,000 jobs and surpassing even the most bullish prediction
in a Reuters poll.
OTTAWA (Reuters) – A Canadian aboriginal chief in the third week of a hunger strike is urging Prime Minister Stephen Harper to “open his heart” and meet with native leaders angered by his policies as small impromptu protests spread beyond Canada’s borders.
Chief Theresa Spence from the remote northern Ontario community of Attawapiskat has been fasting since December 11 and has vowed to continue until Harper personally commits to the talks on a litany of complaints, including new legislation that she says will harm native lands.
OTTAWA (Reuters) – Musings on unorthodox monetary policies are giving incoming Bank of England Governor Mark Carney a “radical” image before he even sets foot in his future home, but his record as head of Canada’s central bank reveals him as a free-thinker on paper rather than in practice.
At three crucial crossroads during his mandate at the Bank of Canada, Carney talked about delving into bold, new frontiers of monetary policy. But when each decision time came, he opted for the more conservative path.