WASHINGTON (Reuters) – The Bank of Canada’s decision to hold interest rates steady last month, coming on the heels of rising oil prices, appears to have pushed hesitant foreign exchange traders to bid up the Canadian dollar, central bank Governor Stephen Poloz said.
He was referring to the central bank’s April 15 rate decision, which came after a surprise rate cut in January and was coupled with a forecast that economic growth would rebound strongly this year from zero growth in the first quarter.
WASHINGTON, April 17 (Reuters) – The Bank of Canada will
ignore that part of the surge in March core inflation which is
due to the fall in the Canadian dollar, Governor Stephen Poloz
said on Friday, adding that the growing output gap was exerting
downward pressure on inflation.
Canada’s core inflation rose to 2.4 percent in March from
2.1 percent in February, putting it well above
the central bank’s 2 percent target. Poloz, however, said the
jump was primarily due to higher prices for cars, which are
sensitive to exchange rates.
WASHINGTON (Reuters) – The Group of 20 leading economies struck a hopeful tone on the outlook for global growth on Friday even as officials fretted that Athen’s inability to strike a deal with its lenders could upset Europe’s tentative recovery.
In a draft of a communique to be released later in the day, G20 finance ministers and central bankers welcomed brighter economic signs in rich economies, but lamented over weakness in some emerging nations.
WASHINGTON (Reuters) – Britain favors the eventual inclusion of the Chinese yuan in the International Monetary Fund’s SDR basket of currencies, finance minister George Osborne said on Friday, saying it was important to include emerging powers in the world system.
He also sought to explain Britain’s surprise decision last month to join the Beijing-dominated Asian Infrastructure Investment Bank (AIIB), despite reservations from some allies, by reasoning that it was important to influence the bank’s direction.
WASHINGTON (Reuters) – Foreign investors should not look to the Indian government for now to provide relief from a ruling requiring them to pay taxes on years of previously untaxed capital gains, Indian Finance Minister Arun Jaitley said on Thursday.
U.S. and European investor groups are upset with the Minimum Alternate Taxation (MAT) measure, which would apply levies for past years at a higher rate than they had been subject to in the past. Tax experts say the foreigners may owe $8 billion.
WASHINGTON, April 16 (Reuters) – The head of the
International Monetary Fund on Thursday signaled she would not
grant a payment delay to Greece, as it had never been done for
an advanced economy and the Fund should protect its safe
IMF Managing Director Christine Lagarde said a Greek delay
on its repayments to the Fund would not be recommended in the
OTTAWA (Reuters) – The Bank of Canada held its benchmark interest rate steady on Wednesday, saying the economy will pick up as non-energy exports and labor markets strengthen even though the oil price crash probably cut economic growth to zero in the first quarter.
A considerable easing in financial conditions largely due to the bank’s surprise interest rate cut in January, together with improving U.S. demand, will bolster the transition of Canada’s oil-heavy economy to non-energy exports, investment and a stronger jobs market, the bank said.
OTTAWA (Reuters) – Canada broke its silence on Tuesday over whether it would take part in the China-led Asian Infrastructure Investment Bank, signaling it was actively considering joining the institution despite U.S. and Japanese reservations.
A senior Canadian finance official revealed the stance to reporters ahead of meetings in Washington of the Group of 20 (G20) leading economies, saying Ottawa welcomed the idea of a new Asian infrastructure investment bank.
OTTAWA, March 25 (Reuters) – Three Canadian National Railway
Co derailments in the same area in three weeks, two of
them involving oil trains, cannot be explained away as a fluke
of nature, Canada’s transport minister said Wednesday, adding
she is satisfied for now with steps CN has taken to prevent
CN Rail oil trains came off the tracks and caught fire near
the small northern Ontario town of Gogama on both Feb. 14 and
March 7. A third train hauling empty cars derailed in the same
area on March 5.
OTTAWA, March 25 (Reuters) – The Canadian government will
not, for now, start telling railways where to ship farmers’
grain but it will decide within days whether to extend its
requirements on how much grain they must haul, Transport
Minister Lisa Raitt said on Wednesday.
In an interview in her parliamentary office, Raitt said
farmers and shippers have questioned whether the government’s
grain-shipment minimums are still required and whether Ottawa
should tell the country’s two dominant railways, Canadian
National Railway Co and Canadian Pacific Railway Ltd
, on which corridors grain should be shipped.