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

Kelowna boy returns to school after recovering from possible Xanax OD

RCMP investigation found the drug to be a form of benzodiazepine, commonly known as Valium or Xanax

RCMP seeking assistance to locate missing West Kelowna resident

Kasey-Anne Balaberda was reported missing on Sept. 15

Renovations underway for Tim Hortons at Kelowna International Airport

The Tim’s will remain open through the renovations but with a reduced menu

Kelowna man sentenced to 35 years for the murder of wife and daughters

This marks the first time in B.C. that consecutive sentences will be handed down for somebody convicted of multiple murders

Man cycles across B.C. Interior for sobriety

Vancouver Island Resident Matt Fee is approaching the final phase of his cross-Canada bike journey to raise awareness about addiction recovery.

VIDEO: Liberals make child care pledge, Greens unveil platform on Day 6 of campaign

Green party leader Elizabeth May unveils her party’s platform in Toronto

Canucks sign Brock Boeser to three-year, US$17.6-million deal

Young sniper will be in Vancouver Tuesday

B.C. forest industry looks to a high-technology future

Restructuring similar to Europe 15 years ago, executive says

RCMP conclude investigation into 2017 Elephant Hill wildfire

Files have been turned over to BC Prosecution Service

B.C. wants to be part of global resolution in opioid company bankruptcy claim

Government says settlement must include Canadian claims for devastation created by overdose crisis

B.C. ends ‘birth alerts’ in child welfare cases

‘Social service workers will no longer share information about expectant parents without consent’

U.S. student, killed in Bamfield bus crash, remembered as ‘kind, intelligent, talented’

John Geerdes, 18, was one of two UVic students killed in the crash on Friday night

Facebook group forms committee against Thompson Nicola R.V. crackdown

Group discusses issues with regional R.V. bylaw at recent meeting

Free Tesla 3 offered with purchase of Surrey townhome

Century Group’s offer for Viridian development runs through Oct. 31

Most Read