Bank of Canada ‘contingency planning’ in case public digital currency becomes necessary, official says
The Bank of Canada doesn’t currently have cause to issue a digital currency, but it can envision a future where it may need to be ready to do so, an official from the central bank suggested on Friday. Deputy governor Timothy Lane said during an event at the Federal Reserve Bank of Philadelphia that the Bank of Canada has conducted research over the past few years about whether the central bank should try to create a digital currency. “I think the conclusion when we think about it is that we can’t really see a compelling reason for doing it under current circumstances, but we can plausibly see the world changing in a way that could actually make it something we’d want to cons
Canada ’ s economy is deeply flawed, but it appears to have at least one characteristic that will keep it in the big leagues: resiliency . The GDP numbers favour continuing the holding pattern that the Bank of Canada entered a year ago. Governor Stephen Poloz and his deputies will end their latest
The economy of Canada is a highly developed market economy . It is the 10th largest GDP by nominal and 16th largest GDP by PPP in the world.
Canada’s economy is deeply flawed, but it appears to have at least one characteristic that will keep it in the big leagues: resiliency.
Gross domestic productat an annual rate of 1.3 per cent in the third quarter, Statistics Canada reported on Friday. That should mute the recession talk, while at the same time bolstering the arguments of those who say Canada needs to work on its competitiveness. The Bank of Canada the economy can run at an annualized pace of about 1.7 per cent without overheating, so clearly there’s some work to do.
Woman feels 'violated' after bank cancels her debit card number, gives it to a stranger
A Toronto woman says she feels "violated" out after TD Canada Trust mistakenly assigned her debit card number to someone else and cancelled her card. Mila Mayall says she was worried her personal information had been compromised. After dinner one night last month, Mila Mayall tried to pay for the meal using her debit card, but the transaction wouldn't go through. So she went to a convenience store to take out cash, but that didn't work either. It was only when she called TD Canada Trust that she was told her debit card had been cancelled and her number reassigned.
At the Bank of Canada , we have been watching these debt levels closely because of the growing risks they pose to Furthermore, our financial system is resilient , and the new mortgage rules mean that it is Ultimately, the Bank ’ s job is to look at the economy as a whole and judge the outlook for inflation.
The pace of economic growth in Canada slowed in the third quarter, boosted by higher business investment and increased household spending The latest reading on the economy comes ahead of the Bank of Canada ' s interest rate announcement next week. The central bank is expected to keep
For now, the central bank will probably continue to leave that work to others. The GDP numbers favour continuing the holding pattern that the Bank of Canada entered a year ago.
Governor Stephen Poloz and his deputies will end their latest deliberations with a new policy statement on Dec. 4. When they last met at the end of October, theythey were concerned about exports and business investment, and therefore would be paying “close attention” to the engines that will have to push the economy through those headwinds, namely consumer spending, housing and fiscal policy.
Exports during autumn were about as bad as you’d expect given the trade wars and the weakest global economic growth since the Great Recession. Overall, shipments abroad declined from the second quarter, and services, which have been a source of consistent strength for several years, only expanded 0.1 per cent after increasing 2.8 per cent in the previous three months.
Bank of Canada governor says climate change poses risks to financial systems
Bank of Canada governor says climate change poses risks to financial systems"It's about the transition risk, right, as everyone's portfolio and all their lending practices kind of converge on a different climate trend line, that that could have significant consequences for financial systems," he said.
Canada ’ s economy is shifting into a lower gear as some of the country’s growth drivers begin to lose steam. Statistics Canada will release third-quarter gross It’s a return to sluggish growth that may become the new normal for a Canadian economy seeing many of its engines of growth sputter, from
The Bank of Canada has been quiet on the subject in recent weeks, but the last time Poloz spoke in May he reiterated his belief there’ s underlying strength in the economy and that interest rates are poised to continue rising once headwinds dissipate. The Bank of Canada has already raised
That matters because total exports are the equivalent of about 32 per cent of Canada’s $2.1 trillion GDP. The domestic market isn’t big enough to keep the economy growing at a significant rate, but when executives see a backlog of international orders, they are supposed to invest in order to keep up with demand. The trade wars are choking such investment around the world by creating uncertainty about the future.
Remarkably, Canadian business investment in non-residential structures, machinery, and equipment increased at an annual rate of 9.5 per cent in the third quarter, reversing a seven-per-cent drop in the second quarter, and recovering the momentum sparked by an 18-per-cent surge at the start of the year.
The post-crisis oil boom drove quarterly business investment to a record $230 billion in the fourth quarter of 2014 — 30 per cent higher than at the end of 2007. The surge was bubbly, making comparisons with those years problematic. Still, business spending has been disappointing for much of the past decade, forcing the central bank to keep interest rates unusually low. Companies invested $187 billion in the third quarter, the most since the second quarter of 2018, and the third-highest total since the end of 2015, according to StatCan.
Former Bank of Canada governor to serve as UN special envoy on 'climate action'
Former Bank of Canada governor to serve as UN special envoy on 'climate action'U.N. Secretary-General Antonio Guterres made the announcement while speaking to reporters in Madrid on Sunday, adding the move will take effect next year.
Canada ' s economy is resilient , but headwinds will keep the Bank of Canada in its holding pattern . Kevin Carmichael: Friday’s GDP numbers should mute recession talk, while bolstering arguments that Canada needs to work on competitiveness.
The Bank of Canada usually foreshadows an impending move, but it avoided doing so in its September 4 statement and in subsequent communications. And the publication of the MPR gives the Bank a timely opportunity to explain its decision.” While Melino is the only panellist who thinks the
“The first sign of resilience is business investment,” said Sébastien Lavoie, chief economist at Laurentian Bank Securities, adding that upward revisions to the second-quarter numbers “will please (Bank of Canada) officials.”
The second sign is the housing market, which has recovered smartly from a wobble at the start of the year, when tighter lending rules squeezed speculators and forced less creditworthy borrowers to choose between smaller homes or saving for larger a downpayment.
But demand recovered, especially after the interest-rate cuts by the United States Federal Reserve rippled through global credit markets. Residential investment grew at an annual rate of 13.3 per cent last quarter, adding to a 5.5-per-cent increase in the second quarter, StatCan said.
Poloz and his deputies will welcome further evidence that they and other authorities appear to have guided Canada’s frothy housing market to a soft landing. However, it might also give them pause, as they are sensitive about rekindling the credit binge that drove household debt to record levels.
Bank of Canada keeps key interest rate target on hold at 1.75 per cent
Bank of Canada keeps key interest rate target on hold at 1.75 per centThe central bank's overnight rate target has been set at 1.75 per cent since October of last year.
Canada ’ s economy is resilient , but headwinds will keep the Bank of Canada in its holding pattern . United States Trade Representative Robert Lighthizer must satisfy Democrat concerns while holding on to the support of Mexico and Canada , as well as Senate Republicans.
The Bank of Canada ’ s firmly entrenched holding pattern on rates will be put to the test by the Canada doesn’t need to follow the Fed in large part because its growth will be superior to that of the “ That strikes me as odd because of that rate reset headwind -- which was specifically brought up as
Polozthat the Governing Council considered cutting interest rates in October as insurance against an escalation of the trade wars, but ultimately decided against it because of Canadian households’ propensity to borrow the maximum banks will give them.
That debt now represents an important vulnerability because it would exacerbate the pain of an economic downturn caused by the trade wars or some other external factor. It also could cause the downturn if households start devoting more of their incomes to debt payments, and less to purchasing goods and services.
Consumption recovered somewhat in the third quarter, increasing 0.4 per cent from the second quarter, compared with growth of only 0.1 per cent in the April-July period. Still, the quarterly average in data going back to 1961 is 0.8 per cent, so it’s fair to say the domestic economy has lost step. The savings rate was 3.2 per cent, the highest since the autumn of 2015, when the rate was 4.1 per cent. Employment and wage-growth has been strong, so an increased emphasis on savings suggests spending priorities are shifting.
There are worrisome items in the GDP report, to be sure. Exports are a red flag for the short term. The mediocre investment numbers present longer term worries, as they suggest Canadian executives haven’t been doing enough to remain competitive. Spending on intellectual property increased for the second consecutive quarter, but the most recent amount, $34 billion, is 16 per cent lower than the peak reached at the start of 2008.
But for the most part, the world has unfolded essentially the way the Bank of Canada thought it would a month ago. Applying the parameters that the central bank has set, there is no obvious reason to alter interest rates in December, or even in the foreseeable future.
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Poloz says global growth to remain slow, low global interest rates likely .
Poloz says global growth to remain slow, low global interest rates likelySpeaking to the Empire Club in Toronto, Poloz said slowing population growth is holding back economic growth and gains in productivity aren't happening fast enough to offset the change.