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.

Just Posted

Unplowed Roads parody song destined to be a classic

Move over Weird Al, Island elementary students on the same level

North Cowichan to pause all logging in forest reserve for 2019

Municipality expects decision to cause $150,000 shorfall this year

Vancouver measles outbreak prompts vaccine vigilance on Island

No cases here yet, but Island health authorities push measles vaccinations - and not just for kids

Sound of Music echoes with a surprising amount of cool

Chemainus Theatre review: my teenage self didn’t know what he was missing

Robert Barron column: Thanks to municipal workers during snow storm

I’ve always wondered how anything gets done when mounds of snow fall from the sky.

VIDEO: Massive elk herd runs across Washington State highway

Elk have been making an appearance in the Pacific Northwest

Winter storm freezes U.S., halts air travel

Storm dumps snow or heavy rain, snarls travel in much of U.S.

Gwyneth Paltrow: Skier sued me to exploit my fame, wealth

The incident happened in Deer Valley Resort in Park City, Utah

B.C. Seniors Advocate questions labour shortage in care homes

Are there really no workers, or are care aide wages too low?

B.C. business groups worry about looming economic decline in wake of NDP budget

The party’s second government budget focused on plenty of spending, business advocates say

Man injured in police shooting near Nelson has died: B.C. police watchdog

The death follows an incident in Bonnington on Feb. 13

Experts urge caution after 10 human-triggered avalanches across B.C.

One man is still stuck after avalanche on south coast

‘It consumed my life’: Inside the world of gaming addiction

World Health Organization classifies gaming disorder as a mental health condition

Police seize bottles of grapefruit vodka from wanted man’s snow-pants

The men were pushing two shopping carts with a woman inside

Most Read