Ontario Premier Kathleen Wynne appointed a new cabinet today, making her deputy premier the head of the Treasury Board as Canada’s most populous province looks to close a C$12.5 billion ($11.6 billion) budget gap.
The Bank of Canada will probably keep its main interest rate unchanged for a seventh straight meeting today, as economic risks posed by indebted foreign governments outweigh concerns about quicker domestic inflation.
The gap between yields on Canadian 10-year bonds and comparable U.S. Treasuries, already at the widest in almost 1 1/2 years, may widen as the difference in interest-rates between the two countries increases.
Canadian long-term bond yields are falling to the lowest level in more than four years relative to U.S. Treasuries on speculation that inflation in the world’s 10th-largest economy will remain in check.
Bank of Canada Governor Mark Carney , who yesterday said economic growth has slowed more than he expected, may keep interest rates unchanged as long as his U.S. counterparts contemplate additional monetary stimulus.