Bank of Canada Governor Mark Carney will extend the longest interest-rate pause since the 1950s amid signs of deepening strains in Europe and the U.S. while still saying his next move will be an increase, economists said.
Bank of Canada Governor Mark Carney told lawmakers the Canadian economy stalled or shrank last quarter, sharing with Finance Minister Jim Flaherty the view that growth will rebound without further government stimulus.
Quebec is ramping up efforts to develop its northern region by investing in infrastructure, seeking to attract resource companies and boost royalties from increased output of minerals and hydrocarbons, Finance Minister Raymond Bachand said.
Canada’s dollar rose the most in eight months on bets economic growth will fuel demand for the nation’s raw materials and Europe’s debt crisis spurred demand for currencies backed by relatively strong balance sheets.
Canadian investors are paring bets that central bank Governor Mark Carney will increase lending rates after growth in the second quarter slowed to almost one- third the pace of the January-March period and capped a month of weaker-than-forecast reports.
Quebec must take advantage of low interest rates to reduce its debt burden at a time when global investors are driving up borrowing costs for other indebted governments, Canada’s top bank economists said.