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Jan 10, 2014

Canada sets new wireless auction in bid for competition

OTTAWA, Jan 10 (Reuters) – Canada will auction off another
set of airwaves for wireless use in April 2015, structuring the
rules in a way designed to boost competition and lower consumer
prices, Industry Minister James Moore said on Friday.

The announcement on details of the 2,500 megahertz auction
comes as the Conservative government prepares to open the
bidding process for the 700 MHz spectrum on Tuesday.

Jan 10, 2014

Canada loses 45,900 jobs in December in surprise setback

OTTAWA, Jan 10 (Reuters) – Canada’s economy lost 45,900 jobs
in December and the unemployment rate rose to 7.2 percent from
6.9 percent in a surprising setback that may add pressure on the
central bank to consider cutting interest rates.

The employment data released by Statistics Canada on Friday
was the weakest since March 2013. The report also showed hiring
in 2013 was the slowest since 2009, with year-on-year employment
gains in December of just 0.6 percent, or 102,000.

Jan 7, 2014

Bank of Canada head says rates on hold until data improves

OTTAWA, Jan 7 (Reuters) – The Bank of Canada should keep its
key interest rate on hold until the data persuades it otherwise,
central bank chief Stephen Poloz said on Tuesday, adding that he
was not worried about calls from some international players to
tighten.

His comments follow controversial remarks by Canada’s
finance minister on Sunday suggesting there would be pressure to
raise interest rates in 2014.

Jan 3, 2014

Canada says back on track to buy Sikorsky helicopters

OTTAWA, Jan 3 (Reuters) – Canada has reached an agreement
with United Technologies Corp’s Sikorsky Aircraft unit
to reactivate a C$5 billion ($4.7 billion) deal to buy 28
helicopters that had been beset by delays and was almost
scrapped by Ottawa.

Canada signed a contract in 2004 for Sikorsky’s Cyclone
helicopters to replace its ageing fleet of Sea Kings. But after
delays and complications, Ottawa announced last September that
it might scrap the deal and consider other options.

Dec 20, 2013

Canada inflation picks up but still in danger zone

OTTAWA, Dec 20 (Reuters) – Canada’s annual inflation rate
crept higher in November to 0.9 percent from 0.7 percent in
October but remained below the central bank’s target range,
ensuring that chronically weak inflation will remain on
policymakers’ radar as a top concern.

Retail sales in October came in weaker than expected,
according to Statistics Canada data released on Friday.

Dec 18, 2013

Bank of Canada sees less volatility from Fed tapering

By Louise Egan and Randall Palmer

(Reuters) – Market volatility spurred by the U.S. Federal Reserve’s plans to scale back its massive stimulus program is far less of a concern now than it was earlier this year, Bank of Canada Governor Stephen Poloz told Reuters on Tuesday.

Investors understand the Fed’s thinking much better than they did when Chairman Ben Bernanke first mentioned the possibility of tapering the U.S. central bank’s $85 billion in monthly asset purchases on May 22, Poloz said.

Dec 16, 2013

Canada provinces fail to reach deal with Ottawa to lift pensions

MEECH LAKE, Quebec, Dec 16 (Reuters) – Canada’s federal
government and the governments of its 10 provinces failed to
agree on Monday on a deal to enhance the country’s public
pension plan.

Some provinces, worried by studies showing Canadians are not
saving enough for retirement, want to boost Canada Pension Plan
(CPP) payouts by obliging workers and employers to make higher
contributions.

Dec 12, 2013

Bank of Canada more worried about low inflation

MONTREAL, Dec 12 (Reuters) – The Bank of Canada is more
worried about the downside risks to inflation than the upside
ones, Bank of Canada Governor Stephen Poloz said on Thursday,
but gave no indication what the next move on interest rates
would be.

The central bank has held its key overnight rate at a
near-record low of 1 percent since September 2010. It was a
touch more dovish in its Dec. 4 statement, which kept interest
rates on hold, saying the downside risk to inflation appeared to
be greater than before.

Dec 10, 2013

Bank of Canada says housing, debt still pose stability risks

OTTAWA, Dec 10 (Reuters) – Soaring consumer debt and a
robust housing market pose an “elevated” risk to Canada’s
financial stability, but the overall level of danger has fallen
from six months ago, the Bank of Canada said on Tuesday.

“In Canada, the high level of household debt and imbalances
in the housing sector are the most significant domestic
vulnerabilities to address,” the central bank said in its
semi-annual Financial System Review.

Dec 5, 2013

Bank of Canada No. 2 Tiff Macklem to leave in May

OTTAWA, Dec 5 (Reuters) – Bank of Canada Senior Deputy
Governor Tiff Macklem is resigning in May 2014 to become dean of
a business school in Toronto, the central bank said on Thursday,
some six months after Macklem was passed over for the job of
governor.

Macklem had been widely seen as the front-running candidate
to replace Mark Carney as governor at the Bank of Canada, but in
May the government appointed another prominent economist,
Stephen Poloz, instead. Poloz took over in June.

    • 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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