Senior Correspondent
Louise's Feed
May 29, 2013

Bank of Canada holds rate-hike bias in Carney’s final decision

OTTAWA, May 29 (Reuters) – The Bank of Canada said on
Wednesday that its next move would be an interest rate hike
rather than a cut, repeating its previous language and opting
not to rock the boat in the final policy decision under outgoing
Governor Mark Carney.

The central bank held the key policy rate at 1 percent, as
expected, extending a nearly three-year freeze on rates, the
longest since the 1950s.

May 28, 2013

Canada finance minister keen to stay as cabinet shuffle looms

OTTAWA, May 28 (Reuters) – Canadian Finance Minister Jim
Flaherty has no plans to quit and has received no indication
that his job is in jeopardy ahead of a cabinet reshuffling, his
chief spokesman said on Tuesday.

Flaherty’s poor health – he suffers from a rare skin disease
- has fueled speculation in recent months that he would step
down. But Dan Miles, his director of communications, said he was
feeling much better these days.

May 28, 2013

Analysis: Canada may settle for markets watchdog with less bite

OTTAWA/TORONTO (Reuters) – Canada is pushing ahead with plans to create a new but watered-down version of a national securities regulator as its campaign to create a more powerful watchdog like the U.S. Securities and Exchange Commission appears to be headed toward failure.

The Conservative government’s new plan would bypass the country’s powerful provinces and focus on detecting market risk, sources familiar with the process told Reuters. This alternative, however, is unlikely to impress investors and the financial industry given its limited powers and the potential for duplication and more bureaucracy, industry officials say.

May 28, 2013

Canada may settle for markets watchdog with less bite

OTTAWA/TORONTO, May 28 (Reuters) – Canada is pushing ahead
with plans to create a new but watered-down version of a
national securities regulator as its campaign to create a more
powerful watchdog like the U.S. Securities and Exchange
Commission appears to be headed toward failure.

The Conservative government’s new plan would bypass the
country’s powerful provinces and focus on detecting market risk,
sources familiar with the process told Reuters. This
alternative, however, is unlikely to impress investors and the
financial industry given its limited powers and the potential
for duplication and more bureaucracy, industry officials say.

May 2, 2013

Surprise Bank of Canada chief stands ready to nurture economy

OTTAWA, May 2 (Reuters) – Canada tapped an outsider on
Thursday to head its central bank, bringing in the
well-respected head of the Canadian export credit agency, who
immediately stressed the need to nurture a choppy economic
recovery.

Incoming Bank of Canada Governor Stephen Poloz, 57, worked
at the central bank for 14 years earlier in his career. But he
has spent the last 14 years at Export Development Canada.

Apr 30, 2013

Canadian economy gathers speed in February

OTTAWA, April 30 (Reuters) – Canada’s economy gathered
momentum in February, beating market expectations and pointing
to a more solid performance in the first quarter, although the
data is unlikely to prompt the central bank to raise interest
rates any time soon.

Monthly gross domestic product by industry grew 0.3 percent,
Statistics Canada said Tuesday, while also revising upward its
growth estimate for January, to 0.3 percent from 0.2 percent.

Apr 23, 2013

Bank of Canada’s Carney sees little rate-hike pressure

OTTAWA, April 23 (Reuters) – Outgoing Bank of Canada
Governor Mark Carney signaled on Tuesday he feels little
pressure to raise interest rates any time soon, saying he was
“very encouraged” that Canadians were stabilizing their debt
loads and that the housing market was cooling.

“I would say that as we sit here today, we are encouraged by
the fact that the rate of debt accumulation has slowed,” Carney
told lawmakers.

Apr 19, 2013

G20 agrees not to set hard targets on debt reduction

By Anna Yukhananov and Louise Egan

(Reuters) – Finance leaders of the G20 economies said on Friday they agreed they did not need to set hard targets for reducing national debt levels, and said they would be watching for negative effects from massive monetary stimulus efforts, such as Japan.

Russian Finance Minister Anton Siluanov said at a news conference that finance officials from the Group of 20 nations believed overall debt reduction was more important than specific figures.

Apr 18, 2013

FSB’s Carney wants Libor reform tackled by spring 2014

WASHINGTON, April 18 (Reuters) – Global regulators will
provide more clarity in a year’s time on guidelines for
financial benchmarks like Libor, Bank of Canada Governor Mark
Carney said on Thursday, after a global rate-rigging scandal led
to calls for reform of the system.

Carney, also head of the Financial Stability Board (FSB),
which coordinates financial regulations worldwide, said the FSB
might have a coordinating role in ensuring that any reforms to
reference rates around the world live up to standards of
transparency and good governance.

Apr 18, 2013

Mark Carney, next Bank of England chief, praises U.S. rate signals

WASHINGTON (Reuters) – The Bank of England’s next governor praised the U.S. central bank for signalling when it might start thinking about raising interest rates, as British policymakers start to thrash out their differences over following suit.

Financial markets have begun to contemplate the end of the U.S. central bank’s massive economic stimulus, more than four years after it slashed interest rates to nearly zero to fight off the financial crisis.

    • 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."
    • Follow Louise