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Email this7:39 am
March 2, 2014
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Loonie tumbles after dreadful data. (From Western Union Business Solutions)
The loonie entered March like a dove after shockingly weak data kept higher rates off the table and out of sight. Canada’s economy slowed to a 0.4% annual rate in the fourth quarter, which missed forecasts of 1.2% by a longshot. Growth last quarter was the slowest in two years and down sharply from the 2% pace during the third quarter. On a monthly basis, growth contracted in December for a second straight month. The data cemented expectations for the Bank of Canada on Mar. 6 at 10 a.m. ET to leave interest rates unchanged at 1.75%. Moreover, the sharp slowdown could also give rise to talk of the next move in rates being a loonie-negative cut.
8:43 am
October 29, 2017
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Unemployment is also up. 5.8%
12:44 pm
October 29, 2017
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Nobody saw it coming!
A bleaker picture than anticipated!
Yeah, not quite. Most are simply in denial
8:51 am
October 29, 2017
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Vatox said
Nobody saw it coming!
A bleaker picture than anticipated!Yeah, not quite. Most are simply in denial
This is disturbing that the BoC is reported as “confused”. How is it that our top financial policy makers are “confused”.
6:13 pm
October 21, 2013
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The word "confused" was just a cheap shot by a journalist who wanted to attract your attention - which he obviously succeeded at.
BofC never said they were "confused".
They do admit to uncertainty, as well they should. We live in very uncertain times, with many factors beyond our control and certainly beyond the BoC's control.
What they apparently DID say was:
“Given the mixed picture that the data present, it will take time to gauge the persistence of below-potential growth and the implications for the inflation outlook.”
“With increased uncertainty about the timing of future rate increases, Governing Council will be watching closely developments in household spending, oil markets and global trade policy."
This is similar to the way they talked for several years while we waited for the post-2008 "recovery" to kick in.
6:33 pm
October 29, 2017
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Lol, my remarks were meant to be sarcastic and rhetorical Loonie. That’s why I quoted myself. I believe the journalist is one of the many in denial along with the need to have strong catchy phrases in the article. I see it as projecting.
I have no doubt that the BoC knows exactly what the current conditions in the economy are and how we got here.
8:26 am
December 12, 2009
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Sorry to hear of your terrible spill, Loonie. Hope you're OK. 
Cheers,
Doug
9:16 am
February 20, 2018
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Canada's economy gains 55,900 jobs, beating expectations
Best two-month start to a year since 1981
OTTAWA — The labour market generated a second straight month of strong job gains in February with the creation of 55,900 net new positions, all of which were full time.
The breakdown in the numbers was also positive, with 67,400 new full-time jobs offsetting a loss of 11,600 part-time positions.
Even the wage picture is looking better. Annual average hourly gains accelerated to 2.3 per cent in February from 2 per cent a month earlier, with pay for permanent employees up 2.2 per cent, from 1.8 per cent previously.
https://business.financialpost.com/news/economy/newsalert-statistics-canada-says-economy-added-55900-jobs-in-february fp/bloomberg
10:02 am
October 29, 2017
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That’s good news on the jobs front. Unfortunately, it won’t change the underlying problems.
11:53 am
February 20, 2018
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What underlying problems?
12:21 pm
October 29, 2017
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hotmony said
What underlying problems?
Debt loads( personal, government, investors and corporate), global trade barriers and protectionism, a disintegrating Eurozone, unwillingness of most Canadians to lower their standard of living. And more.
The new jobs will help with the multiplier effect, but won’t change the course that we are on.
12:48 pm
August 17, 2010
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The job news might take a rate cut off the table , I had been hearing rumblings of that too.
1:13 pm
October 29, 2017
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toto said
The job news might take a rate cut off the table , I had been hearing rumblings of that too.
Yes, a rate cut would actually exacerbate the problem as already shown after the Great Recession.
2:29 pm
February 17, 2013
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So we just keep plodding along with artificially low interest rates while Canadians keep piling on debt? Seems like that scenario can only go on so long before the entire economy collapses. If (when) rates eventually start to rise, the fallout (defaults, bankruptcies, house prices, jobs, the dollar) will be more severe than if the problems were addressed now? What's the contingency for when that happens? Is it coincidence that the current monetary policy started when Carney left and Poloz took over?
2:56 pm
October 29, 2017
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Rick said
So we just keep plodding along with artificially low interest rates while Canadians keep piling on debt? Seems like that scenario can only go on so long before the entire economy collapses. If (when) rates eventually start to rise, the fallout (defaults, bankruptcies, house prices, jobs, the dollar) will be more severe than if the problems were addressed now? What's the contingency for when that happens? Is it coincidence that the current monetary policy started when Carney left and Poloz took over?
That’s it exactly Rick. Unless people change their ways, lower interest rates means even more debt and it will simply deferr the fallout and increase the size and magnitude of the explosion. Higher interest rates will simply speed up the fallout as debt loads start defaulting under increased costs. Leaving interest rates on hold will at least give people, governments and corporations time to change their ways. However, since the lot of them seem to just chug along with blissful debt servicing, it will pop on its own because income will decrease under current global economic policies.
The reason we are here is because too many people in the world live beyond their means and because central banks all lowered interest rates to rock bottom back in 2009. A decade of those conditions created a false economy. What should have happened. Is mild lowering of interest rates and acceptance of lower standards of living.
Essentially, the powers that be did not allow the redistribution of wealth to occur and we have a bigger mess now than what would have been.
Please write your comments in the forum.