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Apr 18, 2013

Next Bank of England chief praises U.S. rate signals

WASHINGTON, April 18 (Reuters) – The Bank of England’s next
governor praised the U.S. central bank for signaling 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.

Apr 17, 2013

Bank of Canada cuts growth forecast, warns again of higher rates

OTTAWA, April 17 (Reuters) – The Bank of Canada on Wednesday
chopped its economic growth forecast for the country and left
interest rates unchanged but still insisted the next move in
interest rates would likely be a hike.

It cut its prediction for 2013 economic growth to 1.5
percent — matching this week’s International Monetary Fund
forecast — from the 2.0 percent it saw in January, and hopes
for 2.8 percent growth in 2014.

Apr 15, 2013

Analysis: Canadians losing faith in economic “miracle”

OTTAWA/TORONTO (Reuters) – Factory worker Nelson Claros has little time for talk of the Canadian economic miracle.

The 50-year-old was laid off last year from his job of 22 years at a bus-assembly plant northwest of Toronto, and has since applied for 130 jobs. His best offer: A job at $12 an hour, half his previous wage and not enough to pay his bills.

Apr 15, 2013

Canadians losing faith in economic “miracle”

OTTAWA/TORONTO (Reuters) – Factory worker Nelson Claros has little time for talk of the Canadian economic miracle.

The 50-year-old was laid off last year from his job of 22 years at a bus-assembly plant northwest of Toronto, and has since applied for 130 jobs. His best offer: A job at $12 an hour, half his previous wage and not enough to pay his bills.

Apr 8, 2013

Cloudy outlook makes Canadian companies shy of investment

OTTAWA, April 8 (Reuters) – Canadian businesses see a
challenging year ahead after surviving the weakest two quarters
of growth since the 2008-09 recession, and they expect only
modest sales growth, cautious investment, and tame inflation, a
Bank of Canada poll showed on Monday.

The results of the survey of senior managers, taken from
mid-February to mid-March, support market expectations that the
central bank is under no pressure to raise interest rates.

Apr 2, 2013

Forex controls hinder global growth – Bank of Canada deputy governor

OTTAWA (Reuters) – Countries that impose capital controls and accumulate reserves are delaying the adjustments needed to help the global economy grow fully, Bank of Canada Deputy Governor John Murray said on Tuesday, adding that he did not want to blame anyone country.

“There is a sense that, as indicated by the reserves that have been accumulated and the capital controls, there certainly has been resistance on certain fronts,” Murray said in a presentation in Washington that was webcast.

Apr 2, 2013

Forex controls hinder global growth-Bank of Canada deputy gov

OTTAWA, April 2 (Reuters) – Countries that impose capital
controls and accumulate reserves are delaying the adjustments
needed to help the global economy grow fully, Bank of Canada
Deputy Governor John Murray said on Tuesday, adding that he did
not want to blame any one country.

“There is a sense that, as indicated by the reserves that
have been accumulated and the capital controls, there certainly
has been resistance on certain fronts,” Murray said in a
presentation in Washington that was webcast.

Mar 28, 2013

Hockey helps Canada’s economy grow again in January

OTTAWA, March 28 (Reuters) – Canada’s economy bounced back
from a year-end slump in January thanks to factories, mines and
the return of professional ice hockey, but growth still looks
too weak to match the central bank’s upbeat outlook and interest
rates are unlikely to budge until 2014.

Gross domestic product expanded by 0.2 percent in the month,
Statistics Canada said on Thursday, following the weakest two
quarters since the 2008-09 recession and a 0.2 percent
contraction in December.

Mar 28, 2013

Bank of Canada searches far and wide for Carney’s successor

OTTAWA, March 28 (Reuters) – The search for a new Bank of
Canada chief to replace Mark Carney has pitted internal
front-runner Tiff Macklem against a range of external candidates
as officials look outside the bank for people who may have more
hands-on business experience.

Most central bank watchers believe Macklem, currently
second-in-command at the bank, has outstanding credentials and
deserves to take over when his boss leaves.

Mar 21, 2013

Canada vows balance budget in 2015 without “slash and burn”

OTTAWA, March 21 (Reuters) – Canada’s Conservative
government pledged on Thursday to close tax loopholes and curb
spending to erase its budget deficit in time for the 2015
election, even as it found new cash for infrastructure spending
and extended a manufacturing tax credit.

The projected deficit in the fiscal year ending March 31 is
roughly in line with Ottawa’s previous forecast in November, at
C$25.9 billion ($25.4 billion). The deficit would be about 1.4
percent of the size of the economy, compared to about 5.6
percent for the U.S. deficit.

    • 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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