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Feb 22, 2014

Bank of Canada head: higher growth goal should be seen as aspirational

SYDNEY, Feb 22 (Reuters) – Setting a higher goal for global
growth is a good idea to try to build momentum in the world
economy, but it should be seen as aspirational rather than a
hard target, Bank of Canada Governor Stephen Poloz said on
Saturday.

Poloz, in Sydney for a meeting Group of 20 finance ministers
and central bank chiefs, also said he hoped the worst of the
volatility that has hammered some major emerging markets this
year had passed.

Feb 17, 2014

All G20 members have role in softening volatility-Canada official

OTTAWA, Feb 17 (Reuters) – Advanced economies must explain
their monetary policy approach clearly to the rest of the world
and some emerging economies need to strengthen policies in order
to soften the financial market volatility during this
unprecedented period of transition, a senior Canadian finance
official said on Monday.

Briefing reporters about a Feb. 22-23 meeting of finance
ministers and central bank chiefs from the Group of 20 advanced
and emerging economies in Sydney, Australia, the official, who
declined to be named, said the G20 needed to take a step back
and take a broader view than just the U.S. Federal Reserve’s
tapering of its bond-purchasing program and the spillover
effects.

Feb 11, 2014

Canada charts comfortable course to 2015 budget surplus

OTTAWA, Feb 11 (Reuters) – Canada’s Conservative government
looks set to comfortably balance its books in 2015 or even
sooner, its latest budget showed on Tuesday, with cuts in
spending on the public service more than offsetting a series of
modest new expenditures.

The low-key spending plan leaves Prime Minister Stephen
Harper well-positioned to offer tax breaks and other initiatives
in the runup to an election scheduled for October next year.

Feb 11, 2014

Canadian government set to comfortably balance its budget by 2015

OTTAWA (Reuters) – Canada’s Conservative government looks set to comfortably balance its budget in 2015 or even sooner, its latest budget showed on Tuesday, as public sector cutbacks more than offset a series of modest new spending measures.

The uneventful spending plan leaves Prime Minister Stephen Harper well-positioned to offer tax breaks and other initiatives in the run-up to an election scheduled for October next year.

Feb 11, 2014

Canadian gov’t targets cross-border pricing, wireless prices in budget

OTTAWA (Reuters) – Canada’s Conservative government sprinkled the federal budget on Tuesday with measures aimed at lowering prices, part of a pro-consumer agenda it has touted as it prepares for a 2015 election.

These include a new law targeting the high prices Canadians pay relative to Americans for the same goods and services, a surprisingly interventionist stance for a government that has declared its faith in free markets.

Feb 11, 2014

Canada budget to favor restraint over stimulus

OTTAWA (Reuters) – Canada’s Conservative government will present a cautious budget on Tuesday, lacking any big new measures, as it lays the groundwork for a surplus in 2015 that will allow it to offer tax breaks and other goodies before an election late in that year.

Finance Minister Jim Flaherty is eager to eliminate the government’s relatively small budget deficit and restore the reputation Canada had before the financial crisis as having the strongest fiscal record in the Group of Seven major economies.

Feb 10, 2014

Analysis – Canadian exporters see fewer reasons to cheer currency drop

OTTAWA/TORONTO (Reuters) – Craig McIntosh’s company exports half of what its Canadian plastics factories produce, so he should be rejoicing in the Canadian dollar’s slide to a four-year-low. But he’s not.

The chief executive officer of Acrylon Plastics, which made the plastic parts in the children’s play set on the White House south lawn, says his business is suffering from President Barack Obama’s policy of encouraging American firms to open factories at home.

Feb 7, 2014

Bank of Canada says unworried by retail’s role in disinflation

OTTAWA, Feb 7 (Reuters) – The Bank of Canada signaled a
willingness on Friday to ignore the role intense retail
competition plays in keeping Canada’s inflation rate low, saying
that for monetary policy purposes this is “good disinflation”
and likely transitory.

Tiff Macklem said in his final scheduled public speech as
the central bank’s senior deputy governor that the bank believes
chronically weak inflation in Canada reflects both increased
competition by retailers and excess slack in the economy, with
only the latter considered “bad”.

Feb 5, 2014

Canada to give bank account information to IRS under tax-sharing deal

OTTAWA (Reuters) – Canada and the United States have signed a tax-information sharing agreement, officials from the two countries said on Wednesday, months ahead of implementation of a new U.S. law to crack down on offshore tax avoidance.

The so-called intergovernmental agreement (IGA), one of 22 Washington has signed so far with individual countries, aims to address Canadian government concerns about the reach of Washington’s Foreign Account Tax Compliance Act (FATCA), due to come into effect in July, a senior Canadian finance official told reporters in a briefing session.

Feb 3, 2014

IMF sees limited room for Bank of Canada rate cut

OTTAWA, Feb 3 (Reuters) – The International Monetary Fund
(IMF) says Canada’s central bank is likely to hold its main
interest rate steady until early 2015, and said the bank has
limited room to cut rates because of overvalued housing prices
and record-high household debt.

After consultations with Canadian officials on the state of
the economy, completed in late January, the IMF concluded the
Canadian economy will pick up speed in 2014, but highlighted
concerns that growth is still too reliant on consumer spending
and home-building, while exports and business investment lag.

    • 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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