MOSCOW, July 20 (Reuters) – All the talk of economic
weakness during the G20 talks in Moscow does not make the Bank
of Canada more inclined to keep rates low for longer than it had
otherwise planned, Governor Stephen Poloz said on Saturday.
Poloz also came to the defence of the U.S. Federal Reserve,
stating that Chairman Ben Bernanke’s description of plans
eventually to taper its bond buying was carefully communicated,
as asked for in Saturday’s communiqué of finance ministers and
central bankers of the Group of 20 leading economies.
OTTAWA, July 17 (Reuters) – The Bank of Canada pledged on
Wednesday to keep its benchmark interest rate on hold as long as
there is economic slack, weak inflation and households are
managing debt carefully, but it also made it clear its next rate
move will likely be a hike.
The central bank’s first policy decision under new chief
Stephen Poloz, who took over in June, delivered roughly the same
message as those made under his predecessor, Mark Carney, over
the past year: that it is just a matter of time before borrowing
costs start to rise.
OTTAWA, July 15 (Reuters) – Canadian Prime Minister Stephen
Harper brought new, younger faces into his cabinet on Monday
after an expenses scandal dented his Conservative government’s
popularity, but he kept senior players such as Finance Minister
Jim Flaherty in place.
“He’s the best minister in the G7. We’ve got to keep that
going. The economy remains a priority,” said Harper spokeswoman
Julie Vaux of the decision to keep Flaherty, 63, in a job that
gives him a crucial role in managing the economy.
OTTAWA/NEW YORK (Reuters) – As investigators try to piece together how a parked oil freight train broke free and demolished the heart of a small Quebec town last weekend, a barrage of litigation could soon be hitting everyone from the U.S. rail company to the Canadian government.
The key questions that will have to be answered in the coming weeks and months include whether any cases filed will be heard in Canada or the United States, which parties were most negligent and how liability for the crash is spread among them. Canadian authorities have launched an investigation and say they are looking into possible criminal negligence.
OTTAWA, July 8 (Reuters) – Canadian businesses expect higher
sales growth and more investment and employment in the year
ahead, helped by improving U.S. demand, but they remain wary
given the sluggish economy, a Bank of Canada poll showed on
The survey of senior managers, taken from May 21 to June 13,
showed the balance of opinion on past sales had turned modestly
positive and the future sales outlook was also somewhat
positive, though less so than a quarter earlier.
OTTAWA, June 13 (Reuters) – Canada’s housing market is
stabilizing after the heated conditions of the past several
years but progress will be slow, the Bank of Canada said on
Thursday as it also warned that record-high household debt
levels would persist through this year.
The bank added in a semi-annual report that the risks to the
economy posed by debt and the housing market remain unchanged at
“elevated”, even though the situation appears to have improved
over the past six months.
MONTREAL (Reuters) – Barclays PLC (BARC.L: Quote, Profile, Research, Stock Buzz) Chairman David Walker hit back on Monday against what he said has become the “political and media industry” of badmouthing banks and bankers, and insisted on banks’ vital role in a free-market economy.
“The persistence of hostility to banks and bankers, much more marked in Europe than elsewhere, is in my view seriously unhealthy,” he told the economic Conference of Montreal.
MONTREAL (Reuters) – Low inflation means the Federal Reserve can stick to an aggressive bond buying campaign if it decides that is warranted, even though the nation’s jobs market has perked up since the program was launched, a senior central banker said on Monday.
“Labor market conditions have improved since last summer, suggesting the Committee could slow the pace of purchases, but surprisingly low inflation readings may mean the Committee can maintain its aggressive program over a longer time frame,” said St. Louis Fed President James Bullard.
OTTAWA, June 7 (Reuters) – There’s a note of caution
surrounding the stunning gain of 95,000 Canadian jobs in May,
because the method Statistics Canada uses to get its figures
brings both volatility and a wide margin of error.
But Statscan experts still see a 95 percent chance that the
employment gains were between 37,600 and 152,400 in May – a very
substantial monthly increase given the overall size of the
OTTAWA, June 6 (Reuters) – The new governor of the Bank of
Canada said on Thursday that interest rates will rise one day,
but he stopped short of repeating his predecessor’s explicit
guidance on the likely need for rate hikes, rather than cuts, in
In his first public appearance since taking the reins at the
central bank on Monday, Stephen Poloz said he sees no immediate
risk from current rock-bottom interest rates, although he did
not want loose monetary policy to last for too long.