Flashback: Canada’s rate hikes will be tied to the Fed | Russia to add loonie to reserves: report | The time has come for North American monetary union | Loonie continues race toward parity with U.S. dollar | Ottawa plans U.S. dollar bond | Central bank of Canada stands ready to inflate currency in response to strong loonie | Soaring loonie adds to anxiety over economy | How realistic is a North American currency? | Loonie leaps, then reverses course | Consider a continental currency: Jarislowsky | Globalization makes national currencies obsolete | Vicente Fox Admits Plan For Single NAFTA Currency | Fraser Institute: The Case for the Amero
Les Whittington, Toronto Star
January 21, 2010
OTTAWA–The higher-valued Canadian dollar and the possibility the global recession will linger longer than expected are raising questions about the strength of Canada’s recovery, the Bank of Canada said today.
In its quarterly economic outlook, the central bank said the global economic recovery has begun and Canada is no longer technically in a recession, which is defined as six months of consecutive negative economic output.
But Bank governor Mark Carney is cautious about the strength of the economic rebound in this country.
“There is a risk that persistent strength of the Canadian dollar could act as a significant further drag on growth,” the Bank said in its quarterly Monetary Policy Report, released this morning.
“Another important downside risk is that the global recovery could be even more protracted than projected,” the Bank adds.
The Canadian dollar, which has been trading in the 95-cent (U.S.) range on exchange markets, has climbed steadily over the past two years. A higher dollar makes Canadian exports to the U.S. market less competitive and slows economic growth, particularly in the country’s manufacturing heartland of Ontario.
On Tuesday, the Bank, as expected, announced its trend-setting overnight rate will remain at a record-low 0.25 per cent.
With the recovery far from robust, Carney is making it clear the Bank is likely to stick to its commitment to maintain the current low interest rate setting until mid-2010.
Carney said last year that, barring a burst of inflation, he would keep the rate at that level to spur economic activity and offset the recession.
Source | See also under Money: Record surge in UK inflation | Sarkozy says world currency disorder unacceptable | UK: Interest rates and quantitative easing on hold | Iceland blocks central bank debt repayment deal | Canadian Gold giant faces Honduras inquiry into alleged heavy metal pollution | Canada’s rate hikes will be tied to the Fed | Mint’s missing gold now accounted for | Canadians struggling to dig out of debt | Gold surges above $1,200 | A world awash in debt | U.S. markets fall on Dubai crisis | We’re running out of gold: miners | Russia to add loonie to reserves: report | RCMP: Big error behind missing gold at Royal Canadian Mint | Fed Sicks Attack Dogs On Ron Paul After Audit Amendment Passes | Americans Deserve a Transparent Federal Reserve | Current And Former IMF Heads Call For New Global Currency | U.S. urges China to strengthen currency | Federal Privacy Commissioner raises alarm over terror security measures | George Soros Calls for World Currency and “New World Architecture” | U.S. dollar sags on global financial leaders’ omission | Gold rallies to record above $1,100 | Bank of England extends quantitative easing to Ãƒâ€šÃ‚Â£200bn | G20 Meet To Finalize Dumping Of Dollar This Weekend? 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| All maxed out? Budget measures would improve credit access | Gold surges past $900 mark | Prominent Economist: Crisis Caused By Government Interventions | Zimbabwe unveils 100 trillion dollar banknote | Bank of England cloaks books, fears of monetary manipulation arise | Canadians starting to save cash, shun debt | Analyst: One Third Of Banks Could Collapse or Merge In 2009 | Banks won’t say where U.S. bailout money going | UK: Bailiffs get power to use force on debtors | IMF Chief Warns Of Riots In Response To Economic Crisis | Bank of Canada ready to monetize distressed equities | The ugly spectre of ‘new Keynesianism’ and the self-appointed Guardians | ‘Outrage’ greets banks’ failure to match rate cut | Mexico to downsize metal in coins to save a few cents | Icelanders storm central bank in protest | UK closer to joining euro, EU commission president says | Iceland turns 90 amid economic ruin, currency freeze | Maybe we should look at Zimbabwe before trying to print our way out of a money crisis | Obama appoints architects of economic collapse, financial globalism to economic team | Paulson, Bernanke defend change of plan: $700-billion now to be given directly to banks | Manipulation Of Gold And Silver Prices Further Exposed | Now the consumer crunch: falling credit limits, rising interest rates | Coming soon to your cellphone: Your credit card via RFID chip | A New World Financial Order: It Better Work This Time | Analysts Predict Hyper-Inflation To Push Gold To $2000, Oil to $300 | Ottawa to pour another $50B into mortgage markets | Bank of Canada adds $8B to credit markets | Fed Hides Destination Of $2 Trillion In Bailout Money | Flaherty lauds Keynesian global ‘economic stimulus’ strategies | Who are the Architects of Economic Collapse? | ‘Smart’ Credit Cards, Pilot Project set the Groundwork for Wireless Credit Wallets | Russian government calls for new World Order | New credit cards may shift unauthorized-transaction liabilities to the holder | IMF may need to “print money”, act as “world’s central bank” as crisis spreads | Greenspan tells Congress he’s shocked by credit crunch | Ottawa to guarantee interbank lending | Globalists Exploit Financial Meltdown In Move Towards One World Currency | Wanted: a new financial order | EU leaders to meet Bush and plan “refoundation of capitalism” | Loonie leaps, then reverses course | Bush outlines radical plan to part-nationalise banks | World needs new Bretton Woods, says Brown | IMF prescribes state regulation of ‘global financial order’ | Behind the panic: Financial warfare over the future of global bank power | Tim Rogers: Global Bankers Have Unleashed Inflationary Holocaust | New World Order: Global co-operation, nationalisation and state intervention — all in one day | Federal Reserve Moves to Monetize Commercial Paper Debts | Bank of Canada greases financial system with $12B in new cash | Congressman Ron Paul: Bailout Will Destroy Dollar, World Economy | Canadian Supreme Court refuses to hear appeal in ABCP case | Bank of Canada piles on in global inflationary swindle | Central banks continue inflating global economy | Court Grants Big Banks Immunity from Lawsuits over Derivatives Losses | Financial ’super cop’ role for Fed | Ottawa warns on gold-backed Web trades | Inflation takes over as public enemy No. 1 | Fed eyes Nordic-style nationalisation of US banks | Treasury’s Plan Would Give Fed Wide New Power | Consider a continental currency: Jarislowsky | Globalization makes national currencies obsolete | Vicente Fox Admits Plan For Single NAFTA Currency | Fraser Institute: The Case for the Amero