OTTAWA, July 21 (Reuters) – The Bank of Canada has come
under fire for its increased reliance on an inflation gauge that
some economists say sows confusion in financial markets and
could eventually lead to monetary policy errors.
The central bank, which angered many forecasters in January
with a surprise rate cut and eased again this month, has a
mandate to control inflation, measured by the country’s consumer
price index (CPI). It also uses a core-CPI measure that strips
out some volatile items.
OTTAWA, July 20 (Reuters) – Canada’s opposition New
Democratic Party (NDP) asked the country’s Parliamentary Budget
Officer on Monday to update federal budget figures in light of a
sharply weaker economic forecast from the Bank of Canada.
Canada’s Conservative government, which is facing an
election in October, has pledged to balance the books this year
for the first time in almost a decade. But the economy’s
struggles since last year’s plunge in prices for oil, a major
Canadian export, have raised doubts about whether this can be
OTTAWA, July 17 (Reuters) – Canada’s provinces reached a
long-sought deal on Friday over an energy plan for the country,
agreeing broadly to curb greenhouse gas emissions while also
promoting the use of pipelines.
The oil-producing province of Alberta originally conceived
the strategy as a way to ensure that it could move its fuel to
market. The plan was changed at the insistence of some of the
provinces to reflect their desire to fight climate change.
OTTAWA (Reuters) – If anyone has an explanation why Canada’s exports disappointed in the second quarter, the country’s central bank governor would like to know.
The Bank of Canada cut interest rates by a quarter point on Wednesday for the second time this year as the economy contracted in the first half after the anticipated pick up in non-energy exports failed to arrive.
OTTAWA, July 16 (Reuters) – If anyone has an explanation why
Canada’s exports disappointed in the second quarter, the
country’s central bank governor would like to know.
The Bank of Canada cut interest rates by a quarter point on
Wednesday for the second time this year as the economy
contracted in the first half after the anticipated pick up in
non-energy exports failed to arrive.
OTTAWA, July 15 (Reuters) – The Bank of Canada cut its key
interest rate by 1/4 percentage point to 0.5 percent on
Wednesday, saying an unexpected economic contraction in the
first half of the year had added to excess capacity and put
downward pressure on inflation.
“Additional monetary stimulus is required at this time to
help return the economy to full capacity and inflation
sustainably to target,” the central bank said in the interest
rate decision that accompanied its quarterly Monetary Policy
OTTAWA, July 13 (Reuters) – Canada should make the central
bank’s job easier by splitting off responsibility for risks such
as the hot housing market, leaving it to focus on inflation and
the broader economy, economists said ahead of a key interest
rate decision this week.
The Bank of Canada decides on Wednesday whether to stimulate
a flagging economy by cutting interest rates for the second time
this year, a move that would pour fuel on a property market it
has called overvalued.
OTTAWA, July 6 (Reuters) – Current Canadian business
sentiment paints a picture of two economies, according to a Bank
of Canada report on Monday, with cheap oil depressing the
outlook in petroleum-related industries, but with some promising
The central bank’s quarterly business outlook survey showed
indicators of upcoming business activity remaining low but
edging up modestly, supported by a generally positive U.S.
OTTAWA (Reuters) – The left-wing leader in striking distance of toppling Canada’s Conservative prime minister was once known as “Angry Tom,” but Thomas Mulcair has been turning on the charm to convince voters he is ready to run the country.
The 60-year-old Mulcair, who inherited Canada’s opposition New Democratic Party after his charismatic predecessor died in 2011, holds a slim lead in a tight, three-way race ahead of the Oct. 19 general election, according to the latest polls.
OTTAWA, June 22 (Reuters) – If Canada’s Liberal Party wins
the October general election it will create a special cabinet
committee to oversee damaged relations with the United States,
Liberal leader Justin Trudeau said on Monday.
Trudeau, whose Liberals are in third place in most opinion
polls, blamed Conservative Prime Minister Stephen Harper for
souring ties with Barack Obama by lecturing the U.S. president
in New York on the need to approve TransCanada Corp’s
Keystone XL oil pipeline.