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

Distinguishable stolen bike located in Chemainus

North Cowichan/Duncan RCMP seeking the rightful owner

Nanaimo Ladysmith education support workers’ deal ratified

CUPE Local 606, Nanaimo school district and bargaining agent ratify deal, which runs till June 2022

Decision on the mental fitness of Colin John expected on Friday

Suspect charged with second-degree murder in Chemainus three years ago

Peewee AA baseball Ladysmith 49ers are Western Canadian champions

The 49ers capped off an impressive run with gold at the Western Canadian Championships

Conceptual plans unveiled for Fisherman’s Wharf upgrade

Senior project engineer, Andrew Cornell presented the design at the August 19 Town council meeting

VIDEO: Title of 25th Bond movie is ‘No Time to Die’

The film is set to be released in April 2020

Police watchdog investigating two officers after Langley teen’s suspected overdose

According to IIO, two officers were deployed to help Carson Crimeni but did not locate him before he died

Trudeau vows to stand firm against ‘increasingly assertive’ China

China has accused Canada of meddling in its affairs

Huawei executive’s defence team alleges Canadians were ‘agents’ of the FBI

eng’s arrest at Vancouver’s airport has sparked a diplomatic crisis between Canada and China

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

On vaccines, abortion, Goop, doctor Jen Gunter says: ‘I have a duty to speak up’

She speaks out on menstruation, the wellness industry and vaccines

Warrant issued for man who wielded machete near Nanaimo’s tent city last year

William Robert Francis Carrigan failed to appear in provincial court in Nanaimo on Tuesday

New study suggests autism overdiagnosed: Canadian expert

Laurent Mottron: ‘Autistic people we test now are less and less different than typical people’

B.C. father tells judge he did not kill his young daughters

Andrew Berry pleaded not guilty to the December 2017 deaths

Most Read