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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.

Feb 1, 2014

Grief-stricken Quebec town mourns victims of retirement home blaze

ISLE-VERTE, Quebec (Reuters) – About 900 mourners in the small grief-stricken Quebec town of L’Isle-Verte attended a public mass on Saturday for the 32 people feared dead from a fire that ripped through a wooden retirement home.

Somber-faced friends and relatives sat in the town’s large 19th-century Roman Catholic church to hear prayers and tributes to victims of the January 23 blaze, one of the worst disasters to hit a Canadian residence for the elderly.

Feb 1, 2014

Quebec town mourns blaze victims as probe reaches critical stage

ISLE-VERTE, Quebec (Reuters) – Investigators sifting through the charred debris at a Quebec home for senior citizens may have found the spot where the fire started, police said on Friday, as the grief-stricken town prepared for a special ceremony for the victims on Saturday that will include Prime Minister Stephen Harper.

Thirty-two elderly residents are presumed dead after a fire ripped through the three-story building early on January 23 in the tiny town of L’Isle-Verte on the south shore of the St. Lawrence River, about 230 km (143 miles) northeast of Quebec City.

Jan 27, 2014

Canada’s Flaherty says “no doubt” budget balanced by 2015

OTTAWA, Jan 27 (Reuters) – Canadian Finance Minister Jim
Flaherty said on Monday there is “no doubt” the government’s
books will be balanced in 2015, but he cautioned against
speculation the federal deficit will be eliminated any sooner
than that.

Flaherty, speaking to reporters in Ottawa, said he would
announce in the House of Commons later in the day the date the
government’s 2014-15 budget will be released. It is expected to
be in the first half of February.

Jan 23, 2014

Canada, U.S. agencies urge fast action on oil-by-rail safety

OTTAWA, Jan 23 (Reuters) – North American regulators should
phase out the type of rail car involved in last July’s deadly
Lac-Megantic crash “sooner rather than later,” Canadian
investigators said on Thursday, urging the United States and
Canada to impose tougher standards swiftly.

Canada’s Transportation Safety Board (TSB) and the U.S.
National Transportation Safety Board (NTSB) issued three
recommendations each, adding pressure on regulators to improve
safety on the tracks after a series of oil-by-rail accidents in
recent months.

Jan 22, 2014

Bank of Canada leaves door open to rate cut if risks grow

OTTAWA, Jan 22 (Reuters) – The Bank of Canada signaled on
Wednesday it is more concerned about weak inflation than it was
three months ago and explicitly stated that its next move on
interest rates could be either down or up, depending on how
economic data unfolds.

The bank held its main overnight rate unchanged at 1.0
percent, as expected. While it said a more firmly entrenched
U.S. recovery and a weaker Canadian dollar would help lift
exports this year, its guidance on monetary policy was
incrementally more dovish than it had been.

Jan 21, 2014

Auto sector bounce good news for Canadian factories in November

OTTAWA, Jan 21 (Reuters) – A revived auto sector boosted
Canada’s manufacturing sales in November and helped prevent a
slide in wholesale trade, a trend that may continue into 2014 as
a weaker Canadian currency and strengthening U.S. economy spur

Factory sales jumped 1.0 percent to C$50.5 billion ($45.9
billion) in the month, the highest level in nearly two years and
approaching levels typically seen before the 2008-09 recession,
Statistics Canada data showed on Tuesday.

Jan 13, 2014

Bank of Canada poll sees businesses more upbeat, cautious

OTTAWA, Jan 13 (Reuters) – Canadian businesses were hopeful
in the fourth quarter of 2013 that sales would increase over the
next year and were more upbeat on investment and hiring than in
the previous quarter, according to a Bank of Canada survey
released on Monday.

But the positive outlook was not shared evenly among the
senior managers participating in the bank’s quarterly survey.
Details of the responses showed that companies benefiting from
an improving global economy appeared more encouraged than those
relying solely on the domestic market.

    • 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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