OTTAWA (Reuters) – The Bank of Canada stunned markets by cutting interest rates on Wednesday, citing a threat to economic growth and its inflation targets from the dramatic drop in oil prices and said the bank stood ready to ease policy further if necessary.
Governor Stephen Poloz said the central bank’s surprise move to stimulate the economy provides “insurance” against risks for Canada, a major oil producer, stemming from the “oil price shock”. He said oil’s plunge could worsen household debt burdens by driving up unemployment and cutting incomes.
OTTAWA/FRANKFURT (Reuters) – The Bank of Canada joined the list of “unpredictable” central banks on Wednesday with a shock quarter point rate cut as the European Central Bank prepared a 600 billion euro ($695 billion) bond-buying program aimed at lifting Europe out of its economic doldrums.
The Canadian move came in response to a sharp drop in oil prices that hit the commodity-dependent economy, expected to grow by just 1.5 percent in the first half of this year compared with the central bank’s previous forecast of 2.4 percent.
OTTAWA/FRANKFURT, Jan 21 (Reuters) – The Bank of Canada
joined the list of “unpredictable” central banks on Wednesday
with a shock quarter point rate cut as the European Central Bank
prepared a 600 billion euro ($695 billion) bond-buying program
aimed at lifting Europe out of its economic doldrums.
The Canadian move came in response to a sharp drop in oil
prices that hit the commodity-dependent economy, expected to
grow by just 1.5 percent in the first half of this year compared
with the central bank’s previous forecast of 2.4 percent.
OTTAWA (Reuters) – In a shock move, the Bank of Canada cut its benchmark interest rate on Wednesday to counter the effects of cheaper oil on economic growth and inflation and help guard against the risks of a housing market downturn.
Ending the longest period of unchanged rates in Canada since 1950, the central bank cut its overnight rate to 0.75 percent from 1 percent, where it had been since September 2010, and it dramatically slashed its inflation and growth forecasts for the coming year.
OTTAWA (Reuters) – A possible bid for BlackBerry Ltd by South Korea’s Samsung Electronics Co Ltd would be unlikely to raise Canadian government security concerns, sources familiar with Ottawa’s thinking said on Wednesday.
“I don’t imagine that there’d be any security roadblocks,” the source said, reacting to a Reuters story that Samsung had recently approached BlackBerry Ltd about buying the smartphone maker.
OTTAWA (Reuters) – The Canadian economy showed surprising strength in October, growing by 0.3 percent after a 0.4 percent gain in September, due in part to an unexpected surge in manufacturing, according to Statistics Canada data released on Tuesday.
Economists now expect annualized fourth-quarter growth to come in close to, or above, the Bank of Canada’s 2.5 percent forecast, which would be high enough to eat into some of the economy’s spare capacity. Previous predictions had been as low as 2 percent.
OTTAWA (Reuters) – The Federal Court of Canada agreed on
Wednesday to order Apple Inc’s Canadian subsidiary to
turn over documents to the Competition Bureau to help
investigate whether Apple unfairly used its market power to
promote the sale of iPhones.
In seeking the order, the Competition Bureau said agreements
Apple negotiated with wireless carriers may have cut into
competition by encouraging the companies to maintain or boost
the price of rival phones.
OTTAWA, Dec 15 (Reuters) – The Canadian government will curb
its spending if necessary due to lower oil prices in order to
meet its budgetary plans, Treasury Board President Tony Clement
told Reuters on Monday.
The federal government has pledged to balance the budget in
2015-16 but if oil prices continue to be low, they are expected
to take a bite out of government revenues
OTTAWA (Reuters) – Canadian consumers may have ended up
paying higher prices for cellphones and wireless services
because of contracts between Apple Inc’s Canadian unit
and domestic carriers, the Canadian Competition Bureau said in a
court filing this week.
The affidavit made on Tuesday by the Competition Bureau’s
Vincent Millette listed several ways the agreements with the
phone companies may have prevented or lessened competition.
OTTAWA (Reuters) – Canada will stay part of Lockheed Martin Corp’s F-35 Joint Strike Fighter program while a decision is made on whether to actually buy the plane, the government said on Wednesday.
But Ottawa outlined several risks to the program, which has been hit by major delays and cost overruns. The risks include software delays and limitations as well as affordability.