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

Shinedown pumped to return to Penticton

The metal band stops at the South Okanagan Events Centre on Oct. 15

Alice Cooper coming back to South Okanagan

Alice Cooper’s Ol’ Black Eyes is Back is coming to Penticton in April 2020

Soupateria serves up Thanksgiving for plenty of patrons

Over 175 meals were served by the team of volunteers over two hours on Monday.

First Things First and Penticton Lakeside Resort hosting environmental all-candidates debate Oct. 15

Ahead of the debate, there will be a round table discussion with the candidates

Final day of racing approaching at the Penticton Speedway

The Halloween finale starts at 2 p.m. on Oct. 27.

Election 2019: Connie Denesiuk – Liberal Party candidate for South Okanagan – West Kootenay

Connie Denesiuk is running for the Liberal Party in the South Okanagan – West Kootenay riding

Cheating husband sues mistress for gifted ring after wife learns about affair

The husband gave his mistress $1,000 to buy herself a ring in December 2017

British couple vacationing in Vancouver detained in US after ‘accidentally’ crossing border

Parents travelling with three-month-old reportedly being held in Pennsylvania

After losing two baby boys, B.C. parents hope to cut through the taboo of infant death

Oct. 15 is Pregnancy and Infant Loss Awareness Day in B.C.

Extra week added to Sagmoen trial

Pre-trial conference Tuesday sees trial proper date pushed back to Dec. 2

Alberta to join B.C.’s class-action lawsuit against opioid manufacturers, distributors

B.C. government claims opioids were falsely marketed as less addictive than other pain meds

Okanagan restaurant adds Canadian top 50 accolade to their menu

Old Vines Restaurant in West Kelowna was named a top restaurant for a date in 2019

VIDEO: Trudeau, Singh posture for ‘progressive’ votes while Scheer fights in Quebec

NDP Leader Jagmeet Singh, whose party has been on the rise in recent polls, is campaigning in Toronto

Why you may want to skip raking leaves this fall

Nature Conservancy of Canada (NCC) said fallen leaves are vital for native insects and pollinators

Most Read