OTTAWA, Oct 8 (Reuters) – The U.S. gridlock over government
finances will dominate a meeting of G20 finance officials this
week but should not slow down the group’s work on an action plan
to bolster long-term growth, a senior Canadian financial
official said on Tuesday.
The official, who briefed reporters on condition of
anonymity, said focusing on the short-term crisis in the United
States was the responsible thing to do because increased
uncertainty could throw a wrench in the efforts by the Group of
20 leading economies to engineer stronger growth. He said the
G20 might have some influence on U.S. officials through peer
pressure and discussion.
OTTAWA, Oct 8 (Reuters) – Canada’s trade deficit widened
more than expected in August as imports soared to a record high,
suggesting that exports were still not providing the
much-desired boost to economic growth in the third quarter.
The trade deficit climbed to C$1.31 billion ($1.27 billion)
as imports grew by 2.1 percent to set a new record and exports
rose by 1.8 percent, Statistics Canada said on Tuesday.
OTTAWA, Oct 7 (Reuters) – The government of Quebec announced
a C$2 billion ($1.94 billion) stimulus package on Monday aimed
at creating jobs and jump-starting the French-speaking
province’s sagging economy, which has underperformed the broader
Canadian economy this year.
Premier Pauline Marois announced the spending package, which
includes tax breaks and power subsidies for companies that
invest, amid speculation her separatist government might force a
snap election later this year in hopes of turning her minority
government into a majority.
OTTAWA (Reuters) – A candid and forward-looking speech from the No. 2 at Canada’s central bank could signal a period of greater transparency under new Governor Stephen Poloz, and a move away from a tightly scripted communications policy that contrasted with that of the U.S. Federal Reserve.
The Bank of Canada has traditionally insisted that all members of its governing council deliver the same message to avoid wrong-footing financial markets, while Fed officials have often issued conflicting views on monetary policy, confusing markets in the process.
OTTAWA, Oct 1 (Reuters) – A candid and forward-looking
speech from the No. 2 at Canada’s central bank could signal a
period of greater transparency under new Governor Stephen Poloz,
and a move away from a tightly scripted communications policy
that contrasted with that of the U.S. Federal Reserve.
The Bank of Canada has traditionally insisted that all
members of its governing council deliver the same message to
avoid wrong-footing financial markets, while Fed officials have
often issued conflicting views on monetary policy, confusing
markets in the process.
OTTAWA, Sept 27 (Reuters) – Canada had bigger budget
deficits in July and in the April-July period than it did in the
same periods last year due to a sharp drop in corporate income
tax revenues, which the government said would be reversed in
The federal budget deficit widened to C$1.98 billion ($1.92
billion) in July, compared with a shortfall of C$1.35 billion in
July 2012, the Department of Finance said on Friday in a monthly
report. The government ran a C$158 million surplus in the month
OTTAWA, Sept 26 (Reuters) – A move by Canada’s federal
government to offload some healthcare costs onto the country’s
provinces will leave provincial governments facing ballooning
debt unless they raise taxes or cut spending, the parliamentary
budget office (PBO)says.
The federal government is in good fiscal health after it
introduced broad spending cuts with the goal of eliminating its
budget deficit by 2015, the PBO said in a report on Thursday on
the long-term fiscal sustainability of Canada’s various levels
OTTAWA, Sept 24 (Reuters) – A senior Bank of Canada official
urged global policymakers on Tuesday to push ahead with
financial system reforms despite economic weakness, saying
financial stability is an important precondition for growth.
“Some have argued that, given the weak recovery, now is not
the time for the broad financial sector reform being promoted by
the FSB (Financial Stability Board). That argument is
wrong-headed,” Lawrence Schembri said in his first speech since
being appointed as a central bank deputy governor in February.
OTTAWA, Sept 24 (Reuters) – Canadian retail sales rose a
solid 0.6 percent in July, making up for losses in June and
setting up the economy to show firm growth in the month and in
the third quarter after a recent rough patch.
Sales growth was pumped largely by gasoline stations, where
both prices and volumes rose, according to a Statistics Canada
report on Tuesday.
OTTAWA (Reuters) – Major foreign telecommunications companies have not registered for a Canadian wireless spectrum auction, raising questions about the government’s plans to introduce more competition into the mobile telephone sector.
The lack of major foreign entrants in a list of bidders that the government published on Monday is good news for the dominant Canadian companies – Rogers Communications Inc, BCE Inc and Telus Corp. The three had complained that the auction rules favored foreigners.