The Bank of Canada is seen Wednesday September 6, 2017 in Ottawa. A Bank of Canada deputy governor says the effects of U.S. trade unknowns, lower oil prices and weaker housing and consumer spending are behind the recent deceleration in the country’s economic growth. (Adrian Wyld/The Canadian Press)

Trade issues, oil slump and lower spending have slowed growth: BoC deputy

Timothy Lane says this slowdown in Canada’s economic expansion is temporary

A Bank of Canada deputy governor says the effects of U.S. trade unknowns, lower oil prices and weaker housing and consumer spending are behind the recent deceleration in economic growth.

In prepared remarks of a speech today in Washington, Timothy Lane says this slowdown in Canada’s economic expansion is temporary.

Lane says these factors along with the fiscal stimulus that has energized the American economy and, as a result, led the U.S. Federal Reserve to raise interest rates have been putting downward pressure on the Canadian dollar.

He says the lower loonie will help support the Canadian economy through this period.

Lane says uncertainty related to U.S. policies has kept business investment lower than where it should be at this point, given the overall strength in the Canadian economy.

Last month, Bank of Canada governor Stephen Poloz kept his benchmark interest rate unchanged at 1.75 per cent as the economy navigates what he described as a temporary period of softness created by a recent, sharp decline in world oil prices.

Lane’s speech to the Peterson Institute for International Economics focused on explaining how Canada manages its foreign reserves, which he noted are about US$85 billion or five per cent of the country’s gross domestic product.

He describes the size of Canada’s foreign reserves as modest yet adequate because the country has a freely floating exchange rate.

One relatively recent development, Lane noted, is that other central banks and monetary authorities started adding Canadian-dollar assets to their reserve portfolios following the global financial crisis about a decade ago. Reserves in Canadian dollars are now about $200 billion, he said.

READ MORE: Bank of Canada offers explanations for country’s ‘puzzling’ wage disappointment

READ MORE: Bank of Canada holds interest rate, views oil slump as temporary soft patch

The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

UPDATED: Pat Bay Highway blockade ends three hours later

About 80 people from four major Peninsula First Nations blocking major highway

Central Saanich Police prepared for afternoon shut-down of Highway 17

Sgt. Paul Brailey questions efficacy of protest

Fiddler on the Roof brings timely message to Oak Bay stage

Musical starts Friday in Dave Dunnet Theatre

North Saanich’s Deep Cove Market up for sale for almost $1.8 million

Long-time owner Rosemary Scott hopes the public will understand her decision

Saanich students get on board Walking School Bus

Rogers Elementary students led by teachers and Saanich Police in new initiative

VIDEO: Province promotes ‘lifting each other up’ on 13th annual Pink Shirt Day in Victoria

Students, MLAs, community members gathered at B.C. Parliament Buildings Wednesday

Greater Victoria Crime Stoppers wanted list for the week of Feb. 25

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Prepare for new coronavirus like an emergency, health minister advises

About 81,000 people around the world have now become ill with COVID-19

B.C. residents in Wet’suwet’en territory have right to police presence: Public Safety Minister

Nevertheless, Bill Blair said officials remain ‘very anxious’ for the barricades to come down

Winnipeg police investigating graffiti on RCMP and other buildings

Manitoba Justice Minister Cliff Cullen denounced the vandalism

B.C. seniors’ watchdog calls for better oversight after recent problems at Retirement Concepts care homes

‘There is no financial incentive right now to be a good operator’ - Isobel Mackenzie

Trucking company fined $175K for Kootenay creek fuel spill

Decision handed down last Friday in Nelson court

B.C. Liberals call for ban on foreign funds to pipeline protesters

Sierra Club, Wilderness Committee back Coastal GasLink blockades

Most Read