MEXICO CITY (Reuters) – The world’s biggest economies will soon discuss how to punish countries that fail to implement tougher new bank rules in a crucial test of their resolve to prevent another financial crisis, officials said.
Countries that miss the deadline for introducing new rules — called Basel III — could be named and shamed as the world’s top policy makers try to sew up reforms to ring-fence the global economy from problems at financial institutions.
MEXICO CITY (Reuters) – Countries may face sanctions if they fail to implement new rules aimed at safeguarding the global banking system from another financial crisis, a senior Mexican finance official said.
New rules forcing banks to roughly triple the size of capital buffers they hold are set to be phased in over six years starting in January, after each country has finalized its own version.
OTTAWA, Nov 2 (Reuters) – Canada’s job market stalled in
October after two months of strong hiring, Statistics Canada
data showed on Friday, confirming expectations employment gains
would ease to reflect sluggish economic growth.
The economy added 1,800 jobs in the month, even lower than
the small increase of 5,000 jobs forecast in a Reuters poll,
while the unemployment rate held steady at 7.4 percent.
OTTAWA, Oct 31 (Reuters) – The Canadian economy unexpectedly
shrank by 0.1 percent in August from July, pointing to slower
growth in the third quarter than in the first half of the year
and supporting a Bank of Canada message that interest rate hikes
are less imminent.
The surprisingly poor performance prompted economists to
mark down their forecasts and sent the Canadian dollar skidding
to a session low against its U.S. counterpart.
OTTAWA, Oct 30 (Reuters) – There are signs that Canada’s
soaring household debt and its heated housing market – two of
the biggest headaches for the country’s policymakers – are
decelerating, Bank of Canada Governor Mark Carney said on
Speaking to legislators, Carney also maintained his stance
as the most hawkish central banker in the Group of Seven rich
countries, saying the bank is more inclined to raise interest
rates than to lower them, although not any time soon.
OTTAWA, Oct 29 (Reuters) – Lower commodity prices are
reducing the Canadian government’s revenues, Ottawa said on
Monday but forecast it will still be able to eliminate its
budget deficit in the medium term.
Finance Minister Jim Flaherty said he expects economic
growth of at least 2 percent through 2017, which was the
consensus of private sector economists surveyed by his office
this month. That leaves the Conservative government’s overall
economic outlook through 2017 unchanged from the forecast in its
March budget despite a drop in its growth outlook for 2013.
OTTAWA, Oct 24 (Reuters) – Canadian interest rate hikes have
become “less imminent” as the economy slows, Bank of Canada
Governor Mark Carney said on Wednesday in unusually explicit
comments likely aimed at clearing up confusion over the central
bank’s recent statements.
The bank has been signaling since April that it will
eventually raise its overnight rate from the current 1.0
percent, making it the only central bank among major
industrialized economies to lean toward a rate hike.
OTTAWA, Oct 24 (Reuters) – The Bank of Canada halved its
forecast for third-quarter economic growth in Canada to 1.0
percent, annualized, on Wednesday and said the degree of slack
in the economy has widened, suggesting rate hikes could come
later than thought.
In its quarterly Monetary Policy Report, the bank also said
indebted households in Canada – a top concern of policymakers -
may be more vulnerable than it had thought.
OTTAWA, Oct 23 (Reuters) – The Bank of Canada surprised
markets on Tuesday by largely keeping a bias toward higher
interest rates and issuing a fairly upbeat outlook on growth,
adding for the first time that soaring household debt could
justify eventual rate increases.
The central bank, which has held its key rate at 1.0 percent
for two years, continued to use the hawkish language that has
made it an outlier among the central banks of major economies.
It softened its tone only slightly by making the timetable for
rate hikes less definite.
OTTAWA, Oct 19 (Reuters) – Canada’s annual inflation rate
remained tame in September at 1.2 percent, unchanged from August
and leaving little justification for the Bank of Canada to
maintain its hawkish bias when it sets interest rates next
Core inflation, which excludes gasoline and other items to
reveal underlying price pressures, also came in below forecasts
at 1.3 percent, down from 1.6 percent in August, according to a
Statistics Canada report on Friday.