Canada column for Sunday, Dec. 10/17
THE CANADIAN REPORT
(c) By Jim Fox
For people with
money in the bank or invested, Canada’s central bank decision to keep interest
rates steady wasn’t encouraging.
However, for those
with loans and mortgages, fees will remain unchanged as the Bank of Canada
opted not to raise its trendsetting “overnight” rate for the third time this
year.
So, the rate will
stay at 1 percent and the commercial bank prime lending rate at 3.2 percent for
now.
“The current stance
of monetary policy is appropriate,” the bank said, adding that it will be
“cautious in making future adjustments to the policy rate” with less monetary
policy stimulus required over time.
The bank raised its
rate by 0.25 percent in July and that amount again last month after no movement
in the previous two years.
A surprise for
economists was the Canadian dollar losing about one cent against the U.S.
currency to 78.15 cents after the bank failed to increase rates.
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Authorities say
safety won’t be compromised even as the Canadian government allows airline
passengers to carry some small knives on most flights.
Transport Canada
said knife blades up to six centimeters (2.4 inches), or about the size of a
large paper clip, will be allowed on domestic and most international flights.
All blades,
however, will continue to be banned on U.S. flights and razor blades and box
cutters of any size will remain prohibited on all flights as will baby and foot
powders.
“These changes to
screening procedures will bring Canada in line with international standards and
our partner countries while continuing to keep passengers safe,” Transport
Minister Marc Garneau said.
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News in brief:
- Rogers
Communications Inc., one of Canada’s largest wireless, cable and media firms,
is considering selling the Toronto Blue Jays. Chief financial officer Tony
Staffieri said it would free up capital for its main communications businesses.
It’s not known if Rogers would also consider selling the Rogers Center where
the ball team plays. It’s estimated the team could be worth $1.65 billion and
the center up to $400 million.
- The U.S. International
Trade Commission voted unanimously that Canada’s softwood lumber exports are harming
American businesses. Preliminary duties set by the U.S. Commerce Department will
remain with most Canadian producers paying countervailing and anti-dumping fees
of 20.83 percent. The charges have driven up the price of lumber in the U.S.
and could cause job cuts in Canada. The U.S. is holding $500 million in
deposits for the duties that so far won’t be returned.
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Facts and figures:
Canada’s dollar has
dropped to 77.83 cents U.S. while the U.S. dollar returns $1.284 in Canadian
funds before exchange fees.
The Bank of Canada’s key interest rate remains
steady at 1 percent while the prime-lending rate is 3.2 percent.
Stock markets are higher, with the Toronto
exchange index at 16,096 points while the TSX Venture index is 792 points.
The average price for gas in Canada is lower at
$1.139 a liter or $4.32 (Canadian) for a U.S. gallon.
Lotto 6/49: (Dec. 6) 6, 9, 16, 19, 21 and 28; bonus 35.
(Dec. 2) 10, 12, 29, 33, 47 and 48; bonus 24. Lotto Max (Dec. 1) 26, 28, 33, 38,
42, 43 and 47; bonus 16.
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Regional briefs:
- The Canada Trans
Mountain pipeline expansion has been approved by the National Energy Board. The
decision allows Kinder Morgan Canada to bypass some bylaws in Burnaby, British
Columbia that have stalled the project already approved by the federal
government. The $7.4-billion pipeline expansion is between Edmonton, Alberta
and Burnaby. It will increase markets by expanding the capacity of North
America’s only pipeline with access to the West Coast, the company said.
- A real “Newfie” hoedown
took place among delayed passengers waiting for a WestJet Newfoundland-bound
flight at Toronto’s Pearson International Airport. It started when passenger
Sheldon Thornhill took out an accordion and was quickly joined by Sean Sullivan
on the guitar for the impromptu sing-along. Island songs included Grey Foggy
Day, Sweet Forget Me Not and Music and Friends.
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Jim Fox can be reached at canadareport@hotmail.com
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