• Tuesday, September 17, 2019 - 03:21 MNI POLICY: Ex-BOJ Aide: Easing Not Needed; But May Cut Rate 0


    TOKYO (MNI) - There is no immediate need for the Bank of Japan to conduct further easing, but the BOJ will likely deepen its short-term policy interest rate further into negative territory as a precautionary move against the accumulating risks facing Japan's economy, former Deputy Governor Hirohide Yamaguchi said Tuesday

    "The already-implemented easing by the BOJ has produced side-effects and I think it doesn't need to conduct further easing, which in turn will further increase side-effects," Yamaguchi, now chairman of the Advisory Board at Nikko Research Center told reporters.

    Although emphasizing the positive benefits to both the economy and financial markets if the BOJ don't conduct further easing, Yamaguchi said that there...

  • Monday, September 16, 2019 - 13:22 MNI DATA IMPACT: Canada Home Sales Rise For 6th Straight Month 0


    Realtors boost forecast through next year on cheaper mortgages

    OTTAWA (MNI) - Canadian home sales increased for a sixth consecutive month in August as falling mortgage rates lured buyers, a factor that also led realtors to lift their forecasts through next year.

    Sales rose 1.4% on the month to 42,127 units, the highest level in more than a year according to a report Monday from the Canadian Real Estate Association. The 8% increase in the Fraser Valley near Vancouver helped lead the increase. While sales rose a slower 0.9% in Toronto, strong demand outside of Canada's largest city boosted CREA's benchmark price index 0.8% on the month, the most in more than two years.

  • Monday, September 16, 2019 - 11:53 MNI POLICY: Key Rates Could Be Cut Further - ECB's Philip Lane 0


    By Luke Heighton

    FRANKFURT (MNI) - Key interest rates could be cut further, the European Central Bank's chief economist said Monday, as he outlined the reasoning behind last week's package of monetary policy measures aimed at boosting growth and inflation.

    However, "the more fiscal policy contributes to boosting long-term growth potential and providing cyclical stabilisation," Philip Lane warned, "the quicker will be the effects of monetary policy interventions on inflation and the economy."

    Here are key points from the speech in Frankfurt:

    -- "If needed," Lane said, "we can further lower the deposit facility rate and, with it, the overnight money market rate.

  • Wednesday, September 11, 2019 - 15:09 US DATA PREVIEW: August Core CPI Seen +0.2%, Headline +0.1% 0


    By Brooke Migdon

    WASHINGTON (MNI) - U.S. consumer prices are likely to rise more slowly in August due to declines in energy prices while core CPI should notch another modest gain as tariffs start to boost the cost of goods from China.

    Headline CPI is expected to fade to a 0.1% increase following a 0.3% gain in July, according to a market median.

    Headwinds from oil prices will likely push energy prices down. Gasoline prices, which account for 4% of the CPI basket, declined 3.5% last month, signaling a slow month for energy that may drive down the August CPI headline numbers.

    Market expectations call for a more modest rise in core CPI, seen as slowing to a 0.2% gain in August from 0.3% in July.

    ...

  • Wednesday, September 11, 2019 - 14:14 MNI POLICY: Canada's Election Focused on Economy Over Populism 0


    --Trudeau and Scheer open campaign with appeals on cost of living

    OTTAWA (MNI) - The upcoming Canadian election in which Prime Minister Justin Trudeau will face Conservative Leader Andrew Scheer may focus on managing deficits amid a U.S.-China trade war and helping families deal with rising housing costs.

    Trudeau seeks a second mandate Oct. 21 as he faces attacks over delayed energy projects and a new carbon tax, with recent polls showing the two parties are tied.

    The leaders will probably avoid a major shift on deficits, allowing the Bank of Canada to take the lead with rate cuts if the economy weakens, according to Jean-Francois Perrault.

  • Wednesday, September 11, 2019 - 09:25 MNI DATA REACT: Canada Energy Capacity Use Highest Since 1999 0


    By Greg Quinn

    OTTAWA (MNI) - Canadian oil and gas companies worked at their highest rate in a decade in the second quarter, a surprise revival after the Alberta provincial government imposed production caps in response to plunging prices.

    The industry's output climbed 6.7% and production capacity was little changed, Statistics Canada said Wednesday from Ottawa. That lifted the capacity utilization rate to 87.3% from 82.2%, the highest since the second quarter of 1999.

    Most of Canada's oil production is from a heavy grade trapped in sand deposits in Alberta. Investment in the region has plunged in recent years on higher costs, increased production of U.S. shale oil and a shortage of pipeline capacity to send product to...