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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

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

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.

Dec 4, 2013

Bank of Canada holds rates, worries about weak inflation

OTTAWA, Dec 4 (Reuters) – The Bank of Canada held its
overnight interest rate steady on Wednesday, but sounded a touch
more dovish in its outlook, saying the risks of undesirably weak
inflation appeared greater than they did six weeks ago.

The change in tone knocked the Canadian dollar to
its weakest level in three years. Traders slightly increased
bets on the possibility of a rate cut in late 2014, though they
are still pricing in less than a 25 percent chance of this

Nov 29, 2013

Canada’s economy gathers speed, no rate move expected

OTTAWA, Nov 29 (Reuters) – Canada’s economy picked up speed
in the third quarter to grow at the fastest pace in two years
but questions remain about the underlying strength in the
economy and the Bank of Canada is seen keeping interest rates on
hold until well into 2015.

Real gross domestic product grew 2.7 percent, annualized, in
the July-September period, driven mainly by consumer spending
and business inventory accumulation, while there were also signs
of a rebound in business investment.

Nov 28, 2013

Quebec delays budget balance by two years to 2015/16

Nov 28 (Reuters) – The Canadian province of Quebec will
eliminate its budget deficit two years later than promised, the
government said on Thursday, citing weak growth and
disappointing revenues.

Quebec had projected a balanced budget in the current
2013-14 fiscal year, but now expects a return to balanced books
in 2015-16, Nicolas Marceau, the provincial finance minister,
said as he released an update to the fiscal outlook.

    • 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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