Breaking News         Latest US News              New York News              Fx Tribune

How to optimise the costs of your business
OTTAWA—With the Bank of Canada widely expected to leave its benchmark interest rate untouched Wednesday, analysts will focus on the tone of an announcement that arrives amid significant uncertainty about U.S. economic proposals.On a more positive note,...

Bank of Canada expected to leave its interest rate unchanged | Toronto Star

OTTAWA—With the Bank of Canada widely expected to leave its benchmark interest rate untouched Wednesday, analysts will focus on the tone of an announcement that arrives amid significant uncertainty about U.S. economic proposals.On a more positive note,...

Bank of Canada expected to leave its interest rate unchanged  | Toronto Star

OTTAWA—With the Bank of Canada widely expected to leave its benchmark interest rate untouched Wednesday, analysts will focus on the tone of an announcement that arrives amid significant uncertainty about U.S. economic proposals.

On a more positive note, the central bank’s latest scheduled rate decision will also come after several recent economic data releases showed the economy had outperformed predictions.

Those improvements are expected to help dampen any chance of an interest-rate cut, said Paul Ferley, assistant chief economist for RBC Economics Research.

“In total, I think the tone might be slightly more upbeat in that the recent data, on net, is maybe coming in slightly stronger than expected, both in terms of growth and inflation,” he said.

With the rate expected to stay at 0.5 per cent, Ferley says analysts will sift through Bank of Canada governor Stephen Poloz’s one-page statement in search of possible signals about the central bank’s policy direction as well as for clues about the timing of its next move.

They will also be looking to learn more about the bank’s thinking when it comes to potential U.S. policy changes that could be introduced under U.S. President Donald Trump.

The proposals, which are concerning for corporate Canada and the federal government, include a border adjustment tax and domestic tax cuts.

Trump has also pushed for the renegotiation of the North American Free Trade Agreement, though he has reassured Canadians that the changes to the deal would only involve “tweaking.”

Read more:

Trudeau dodges question about Trump’s plan to ‘tweak’ free trade

After Trump meeting, Canadian ambassador ‘cautiously optimistic’ about NAFTA

Donald Trump’s ‘jacked up’ manufacturing push a headache for Canada

On Wednesday, Finance Minister Bill Morneau will meet his new U.S. counterpart, Treasury Secretary Steven Mnuchin, for the first time.

Morneau and the Trudeau government have been trying to figure out Trump’s plans and their potential impacts on Canada.

“I can say that I don’t have details on much of what the United States is doing, so I’m looking forward to listening to President Trump (Tuesday) and developing relationships with my colleagues in the United States to better understand their plans,” Morneau told reporters Tuesday in New York, where he gave a speech at Columbia University.

“My meeting with Secretary Mnuchin is very much about developing relationships.”

At home, the Canadian economy has shown some small improvements in recent months.

The most recent labour data from Statistics Canada found that the country continued to generate new jobs in January. However, the numbers also indicated that workers saw their wage increases fade and their hours shrink.

Last week, the agency’s latest inflation report showed that Canada’s annual rate beat expectations in January to hit 2.1 per cent, which is slightly stronger than the Bank of Canada’s ideal two per cent target. Still, the surge was largely due to rising gasoline prices.

On Thursday, Statistics Canada will provide more details about the health of the economy when it releases its fourth-quarter reading for real gross domestic product, a measure of economic growth. The GDP figure over the final three months of 2016 is expected to be more robust than had been anticipated.

The Toronto Star and thestar.com, each property of Toronto Star Newspapers Limited, One Yonge Street, 4th Floor, Toronto, ON, M5E 1E6. You can unsubscribe at any time. Please contact us or see our privacy policy for more information.

Our editors found this article on this site using Google and regenerated it for our readers.

Publish Date : 01 Mart 2017 Çarşamba 09:38

Breaking News Headlines

The curse of the greatest work of engineering of Europe: The 12th line of the London underground is delayed again
The curse of the greatest work of engineering of Europe: The 12th line of the London underground is delayed again
The rental of housing, the most profitable investment: generates 11% and beat on bonds, deposits and Bag
The rental of housing, the most profitable investment: generates 11% and beat on bonds, deposits and Bag
Antonio Rodes: "we're Going to jump out of an economy of waiters and bricklayers to digital"
Antonio Rodes:
The ECB puts an end to the debt purchases and confirms that it will reinvest bonds that mature
The ECB puts an end to the debt purchases and confirms that it will reinvest bonds that mature
The Catalan trade requests the Government to ensure "tranquility," the 21-D
The Catalan trade requests the Government to ensure
What banks allow you to use Apple Pay, Samsung Pay and Google Pay?
What banks allow you to use Apple Pay, Samsung Pay and Google Pay?
The Caixa bet by following "commitment to society" of its founder
The Caixa bet by following
Agrolimen transfer from Sant Joan Despí to Huesca factory broths and soups Gallina Blanca
Agrolimen transfer from Sant Joan Despí to Huesca factory broths and soups Gallina Blanca
Trump and Xi are given a truce in their war commercial
Trump and Xi are given a truce in their war commercial
The gender gap in health, a hole of almost 9,000 million euros a year to Spain
The gender gap in health, a hole of almost 9,000 million euros a year to Spain
The funds star funding business basque are still in 'stand-by'
The funds star funding business basque are still in 'stand-by'
Deutsche Bank: "Spain has lost the favour of the great managers"
Deutsche Bank:
POLLS Results ALL
Who is the most powerful actor in Syria

Front Pages
  • The Sun
NEWS ARCHIVES