OTTAWA, Oct 31 (Reuters) – Canada’s thriving oil and gas
industry helped the economy grow by 0.3 percent in August from
July, Statistics Canada said on Thursday, confirming modest
growth that is expected to keep the Bank of Canada’s monetary
policy on hold for more than a year.
The main contributor to growth in August was mining and oil
and gas extraction, with accommodation and food industries, real
estate services and agriculture and forestry also providing
support. Manufacturing shrank and construction was flat.
OTTAWA, Oct 29 (Reuters) – The Bank of Canada was not making
a significant policy shift when it abandoned 18 months of
warnings about higher interest rates last week, but simply
responding to low inflation and a weak economy, central bank
head Stephen Poloz said on Tuesday.
Poloz told a parliamentary committee that in setting
interest rates last week the bank heightened its focus on the
fact that inflation has been persistently below its 2 percent
OTTAWA, Oct 28 (Reuters) – The Canadian government has no
plans for now to clamp down on the housing market even though
prices are rising again, Finance Minister Jim Flaherty said on
Monday, but he pledged to investigate whether the price uptick
looks to be more than temporary.
Flaherty said that it would be his department’s
responsibility to act on housing prices since the Bank of Canada
has “basically no room to move,” but added: “I have no intention
of interfering in the market for the time being.”
OTTAWA (Reuters) – Canada acknowledged on Thursday that it will miss its target for greenhouse gas emissions by a wider margin than expected unless it takes further action to offset emissions in the oil industry.
The admission in a report by the environment ministry comes as the Conservative Prime Minister Stephen Harper is actively pushing development of the Keystone XL pipeline, which critics say will encourage production in the Alberta oil sands, a top emitter.
OTTAWA (Reuters) – The Bank of Canada has abandoned 18 months of warnings that interest rates will one day have to rise, saying on Wednesday that a soft economy and persistently weak inflation mean there is as much chance of a rate cut as a rate hike.
The surprise policy shift, which knocked the Canadian dollar to a one-week low and sent bond prices higher, came in a statement in which the central bank kept its key rate at 1.0 percent and dropped any hint of an eventual rate increase.
OTTAWA, Oct 23 (Reuters) – The Bank of Canada abandoned on
Wednesday an 18-month stretch of rate-hike talk in a dramatic
policy shift that highlighted lower-than-expected growth and the
risk of persistently weak inflation.
In a statement following its latest monetary policy meeting,
the central bank held its key interest rate at 1.0 percent, the
level it has been at for over three years.
Oct 21 (Reuters) – Burning rail cars from a derailed
Canadian train are taking longer to burn out than Canadian
National Railway (CN) expected, closing the operator’s
main line to the Pacific coast and keeping 100 people from their
The derailment in the province of Alberta, a reminder of a
deadly accident in Quebec in July that killed 47 people,
happened early on Saturday morning near the little settlement of
Gainford, which was evacuated.
OTTAWA, Oct 16 (Reuters) – Canadian manufacturing sales
unexpectedly fell in August, likely dampening economic growth in
the month as the outlook for the sector remains murky in light
of the fiscal standoff in its top market, the United States.
Factory shipments sank 0.2 percent from July to a seasonally
adjusted C$49.5 billion ($47.6 billion) in the month, dragged
down by weakness in the vehicle assembly and food industries as
well as an outsized drop in the small jewelry and silverware
sector, Statistics Canada said on Wednesday.
Analysts surveyed by Reuters had predicted a 0.2 percent
gain in August. Eleven of 21 industries registered setbacks.
The volume of sales, used in calculating gross domestic
product, fell 0.3 percent.
The report suggests manufacturing will contribute little to
monthly GDP and supports the Bank of Canada’s move to downgrade
its growth forecast for the third quarter to between 2.0 and 2.5
percent from 3.8 percent, annualized.
“Manufacturing has stagnated in 2013 and not much positive
momentum should be expected over the balance of the year as the
prospects of a healthy recovery in the U.S. into the fourth
quarter look precarious,” said Mazen Issa, an economist with TD
After weeks of bitter fighting, U.S. lawmakers prepared on
Wednesday to put forth a proposal to raise the debt limit and
reopen a partially shuttered government in hopes of avoiding a
historic default which could throw the economy back into
Canada sells about 75 percent of its exports in the United
“Even if a short-term deal is brokered to extend the
deadline into early next year, uncertainty will hang in the
balance leaving the Canadian manufacturing industry in limbo,”
Issa said in a note to clients.
Year on year, sales were up by just 0.3 percent in current
dollar terms and down 2.1 percent in volume.
Growth in the Canadian economy has disappointed this year,
Bank of Canada Governor Stephen Poloz said on Friday, and August
trade data released last week showed exports were still not
providing the much-wanted boost in the third quarter.
WASHINGTON, Oct 11 (Reuters) – Canada’s economic growth has
disappointed so far, Bank of Canada Governor Stephen Poloz said
on Friday, and he acknowledged his upbeat-sounding speech last
month had caused some market confusion over the bank’s outlook
that needed correcting.
“It’s fair to say that growth has disappointed us to this
stage. We are behind where we thought we would be, say a year
ago or for that matter six months ago,” Poloz said at a news
conference following a meeting of finance ministers and central
bank governors from the Group of 20 nations.
WASHINGTON (Reuters) – Finance officials from the world’s biggest economies on Friday pressed the United States to head off a potentially devastating default and vowed to proceed carefully when the time comes to normalize monetary policy.
A communique issued at the end of a meeting of Group of 20 finance ministers and central bankers said the United States “needs to take urgent action to address short-term fiscal uncertainties.”