Bank of Canada (BoC) news

The Bank of Canada (BoC) Governor Stephen Poloz said in a speech on Thursday that the weak Canadian dollar helps the Canadian economy to adjust to low oil prices.

"The depreciation of our currency is a natural part of the process," he noted.

"Movements in exchange rates are helping economies, including ours, make the adjustments that must take place," Poloz added.

Poloz pointed out that the central bank's monetary policy is focussed on the inflation target.

"The Bank of Canada will continue to run an independent monetary policy, anchored by our inflation target, and we will use our tools to manage risks along the way," the BoC president said.

The Bank of Canada Governor Stephen Poloz said on Tuesday that the recovery of the Canadian economy was on track.

"Although Q3 was quite good, it was not necessarily the new trend line. We expected Q4 to be a little softer than Q3. So far, things have been more or less in line with the dynamic that we predicted," he said.

"We do think that the positives will be dominant in 2016," Poloz added.

The Bank of Canada (BoC) released its interest rate decision on Wednesday. The central bank kept its interest rate unchanged at 0.50%, noting that the current monetary policy is appropriate. This decision was expected by analysts.

The BoC said that the Canadian economy is expected to expand moderately in the fourth quarter of 2015.

According to the central bank, the Canadian economy was adjusting to a drop in Canada's terms of trade, which was driven by the recovery in the U.S. economy, a lower Canadian dollar and stimulus measures by the BoC.

"The labour market has been resilient at the national level, although with significant job losses in resource-producing regions," the BoC noted.

Risks to the country's financial stability are evolving as expected, and risks around the inflation are roughly balanced, the central bank said.

The BoC added that "vulnerabilities in the household sector continue to edge higher".

The Bank of Canada Deputy Governor Carolyn Wilkins said on Friday that there is a transition to non-resource-intensive industries in Canada.

"Resources are going to need to move from the oil industry - investment is down a lot, we think it's going to be down 40 per cent this year and another 20 per cent next year - to non-resource-intensive industries, like manufacturing," she said.

Wilkins added that when the transition is done, Canada's economy could expand in the 2% range next year and 2.5% in 2017".

The Bank of Canada (BoC) Deputy Governor Timothy Lane said in a speech on Tuesday that the central bank may adjust its core inflation measure next year.

"We are examining the properties of these measures of core inflation to determine whether the Bank should continue the practice of identifying one pre-eminent measure as its operational guide," he said.

Lane noted that underlying inflation in Canada is around 1.5% to 1.7%.

He also said that the depreciation of the Canadian dollar supported Canadian export and real economy.

The Bank of Canada (BoC) released its interest rate decision on Wednesday. The central bank kept its interest rate unchanged at 0.50%, noting that the current monetary policy is appropriate. This decision was expected by analysts.

The BoC said that inflation in Canada was driven by lower consumer energy prices.

The central bank noted that the Canadian economy rebounded, supported by household spending.

The BoC lowers its growth forecasts for 2016 and 2017 as lower prices for oil and other commodities weigh on the Canadian economy. The real GDP growth is expected to be 2% in 2016, down from the previous estimate of 2.3%, and 2.5% in 2017, down from the previous estimate of 2.6%.

"The Canadian economy can be expected to return to full capacity, and inflation sustainably to target, around mid-2017," the BoC said in its statement.

Risks to the country's financial stability are evolving as expected, and risks around the inflation are roughly balanced, the central bank said.

The Bank of Canada released its Business Outlook Survey on Friday. The survey showed that business sentiment in Canada remains tepid overall, but "forward-looking indicators of business activity improved".

Future business expectations were supported by the positive outlook for the U.S. economy and a weaker Canadian dollar.

The outlook for many companies tied both directly and indirectly to the resource sector remained weak, due to lower commodity prices.

The Bank of Canada (BoC) released its interest rate decision on Wednesday. The central bank kept its interest rate unchanged at 0.50%. This decision was expected by analysts.

The BoC said that inflation in Canada was driven by lower energy prices.

The central bank noted that "Canada's resource sector continues to adjust to lower prices for oil and other commodities".

The BoC pointed out that the pace of the global recovery is unclear as uncertainty about growth prospects for China and other emerging economies increased.

Risks to the country's financial stability are evolving as expected, the central bank said.

The BoC lowered its interest rate to 0.50% from 0.75% at its last meeting in July.

The Bank of Canada (BoC) released its interest rate decision on Wednesday. The central bank lowered its interest rate to 0.50% from 0.75%. It was the second interest rate cut this year.

This decision was not expected by analysts.

"Additional monetary stimulus is required at this time to help return the economy to full capacity and inflation sustainably to target," the bank said in its statement.

A weak global economic growth, low inflation in Canada and low oil prices lead to this decision.

The central bank said that the real GDP in Canada contracted in the first half of the year.

Canada's real GDP is expected to expand by just over 1% in 2015 and about 2.5% in 2016 and 2017. The central bank expect the economy to return to full capacity and inflation to 2% on a sustained basis in the first half of 2017.

The BoC said that inflation in Canada was about 1% in the recent months due to lower energy prices, while core inflation was about 2%.

"The lower outlook for Canadian growth has increased the downside risks to inflation," the central bank said.

The Bank of Canada (BoC) warned in its latest financial system review on Thursday that lower oil prices could lead to widespread job losses and falling incomes. But the central bank added that the probability of a recession remains low.

The BoC said that the increasing level of household debt and the overvalued real estate market are key vulnerabilities in the financial system. According to the financial system review, the risk of a correction in house prices has "increased marginally".

"There's more debt to income, relatively, than we've ever seen before," the BoC Governor Stephen Poloz said.

The Bank of Canada (BoC) announced its interest rate decision on Wednesday. The BoC kept its interest rate unchanged at 0.75%. This decision was expected by analysts.

The central bank noted that there is still persistent slack in the Canadian economy and that the U.S. economic growth was weak in the first quarter. But the BoC expects the Canadian economy to bounce back in the second quarter.

Canada's central bank said that the consumer price inflation is near the bottom of the central bank's 1.0% - 3.0% range due to falling energy prices, while the core consumer price inflation is above 2% due to a depreciation of Canadian dollar.

The BoC said that consumption in Canada performed relatively well due to lower oil prices.

The central bank also said that risks to the outlook for inflation have not changed and risks to financial stability are evolving as expected.

According to the central bank, financial conditions for Canadian households and firms remain highly stimulative.

The BoC decided that the current monetary policy remains appropriate.

The Bank of Canada (BoC) Governor Stephen Poloz said on Tuesday that he hopes Canada's economy bounce back in the second quarter. The central bank forecasted a zero growth in the first quarter.

"The Canadian rebound hasn't been as quick as we'd like, but recent data have been encouraging," Poloz said.

He noted that there is uncertainty about the country`s outlook due to recent increase in oil prices and the strong Canadian dollar. But he added that the Canadian economy is on track to return to full capacity around the end of 2016.

The BoC governor hopes to see more business investment.

Poloz pointed out that the January interest rate cut is working.

The Bank of Canada (BoC) Governor Stephen Poloz testified before the House of Commons Standing Committee on Finance in Ottawa on Tuesday. He noted that Canada's economy is "doing well" outside of the energy sector, supported by stronger U.S. demand for non-energy exports, the weaker Canadian dollar and interest rate cut in January.

Poloz expects that the Canadian economy starts to grow in the second quarter.

"Our outlook is for the positives to begin to reassert themselves during the second quarter, and to do so clearly in the second half of the year," the BoC governor said.

Poloz pointed out that impact of falling oil prices on Canada's economy is happening faster than the central bank expected.