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.
OTTAWA (Reuters) – Canadian housing may be overvalued by as much as 30 percent, but risks to the country’s financial system remained steady with a stronger U.S. recovery expected to help keep Canada’s economy out of trouble, the Bank of Canada said on Wednesday.
The central bank also said the recent slump in oil prices was not enough to trigger a severe recession that could lead to a sharp correction in housing prices.
OTTAWA, Dec 9 (Reuters) – Prime Minister Stephen Harper
signaled on Tuesday that Canada would not impose regulations on
the oil and gas industry to reduce greenhouse gases without
simultaneous action from the United States, given the steep fall
in oil prices.
“We want to see oil and gas regulations on a continental
basis given the integrated nature of this industry,” Harper told
Parliament. “With the current conditions in the oil and gas
sector, this government will not consider unilateral
OTTAWA, Dec 9 (Reuters) – The Canadian government introduced
legislation on Tuesday to give the country’s competition
watchdog the power to embarrass companies that charge more for
products in Canada than they do in the United States.
The Conservative government’s proposed Price Transparency
Act would fall short of making it illegal to engage in price
discrimination. Doing so had been roundly criticized by
economists as undue interference in the marketplace. Instead,
the bill provides a mechanism to expose price differences.