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Showing posts from July, 2010

BANK of CANADA RAISES INTEREST RATE

The Bank of Canada did as expected yesterday and announced it is increasing the target for the overnight rate by 0.25% to 0.75%. There was some debate earlier in the month whether the central bank would actually continue increasing interest rates, but after the strong job report that was released mid-month announcing that a record number of jobs were created in June, it became apparent that Bank Governor Mark Carney, now had strong justification to increase rates again. Some key items in the release included: Globally Global economic recovery is proceeding but is not yet self-sustaining Greater emphasis on balance sheet repair by households, banks, and governments around the world is expected to reduce global growth then the Bank originally believed back in April The response to the European debt crisis, or Greece’s debt crisis, has reduced the risk of it blowing out of proportion, but it will slow down global growth US consumer demand is increasing but is still not driving growth In

CANADA'S ECONOMY OUTPACING THE US

IMF says Canada will likely outperform this year, sees slower growth in 2011 Thu Jul 8, 9:57 AM Joe Mcdonald, The Associated Press Email StoryIM StoryPrintable View.By Joe Mcdonald, The Associated Press BEIJING, China - Canada's economy is on track to grow more quickly this year than previously expected, putting it ahead of the United States and most other advanced economies, according to new estimates from International Monetary Fund. The IMF said Thursday it's raising the 2010 growth forecast for Canada to 3.6 per cent from its previous estimate of 3.1 per cent, issued in April. The IMF's July report also raised its U.S. growth estimate to 3.3 per cent, up from 3.1 per cent and its world estimate to 4.6 per cent from 4.2 per cent. Asian countries with rapidly maturing economies will grow more quickly than the United States, Japan and European countries that have historically been more advanced. China's growth for this year, for instance, is now projected at 10.5