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uawchild

(2,208 posts)
Wed Oct 21, 2015, 12:11 PM Oct 2015

Bank of Canada downgrades outlook again as oil shock lingers

Source: The Globe and Mail

The Bank of Canada is downgrading its economic outlook again as the country continues to grapple with the “complex” aftershocks of lower prices for oil and other commodities.

As expected, the central bank kept its key overnight lending rate unchanged at 0.5 per cent Wednesday, following two surprise rate cuts earlier this year.

After flirting with a recession early this year, the Canadian economy will grow just 2 per cent in 2016 and 2.5 per cent in 2017, the bank said in latest monetary policy report, also released Wednesday. That’s down from previous forecasts of 2.3 per cent and 2.6 per cent.

Lower oil prices are continuing to sap business investment and put a dent in the value of Canadian exports, overwhelming improvements elsewhere in the economy. And the bank warned that the two-track economy will persist longer than expected, in spite of the positive effects of earlier interest rate relief and the cheaper Canadian dollar.

Read more: http://www.theglobeandmail.com/report-on-business/economy/interest-rates/bank-of-canada-downgrades-outlook-again-as-oil-shock-lingers/article26901121/



Canada's economy is collateral damage caused by Saudi Arabia flooding world oil markets with vast amounts of cheaper to produce oil.

Speculation concerning the Saudi's motives include: putting the US shale oil industry out of business, inflicting economic pain against producers like Russia and Venezuela at the US's behest, maintaining world market share against ALL oil producing nations.

And its not like this is a good thing for the environment, there is more oil selling cheaper than it has in years undercutting any efforts to curtail fossil fuel use. It's a global warming bonanza -- if you like global warming.
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Bank of Canada downgrades outlook again as oil shock lingers (Original Post) uawchild Oct 2015 OP
Wait, I thought... Rod Beauvex Oct 2015 #1
Saudi cheap oil uawchild Oct 2015 #2
All the markets are manipulated by derivatives speculators and commodity cartels. This includes Monk06 Oct 2015 #3

Rod Beauvex

(564 posts)
1. Wait, I thought...
Wed Oct 21, 2015, 01:38 PM
Oct 2015

..that the cheap oil was hurting Saudi Arabia?

I still think there's something to this drop in oil prices that we don't know.

uawchild

(2,208 posts)
2. Saudi cheap oil
Wed Oct 21, 2015, 02:30 PM
Oct 2015

Saudi cheap oils was intended to hurt everyone else first and more so. The continued practice of flooding the oil markets with cheap oil though is starting to impact the deep-pocket Saudis themselves. They can afford to keep it up for a while more in any case.

Monk06

(7,675 posts)
3. All the markets are manipulated by derivatives speculators and commodity cartels. This includes
Wed Oct 21, 2015, 07:48 PM
Oct 2015

everything oil, minerals, and strategic currencies

The Canadian dollar is a petro currency since the Oil Sands boom started so our economy is very exposed to derivatives and forward trading speculators

Harper's economic miracle was all a mirage. He passed off an oil boom as a product of his own economic wisdom. Meanwhile cutting back government spending and leaving us with military and infrastructure investments we now cannot afford.

No worries if he was elected he was going to raise the retirement age to 70, privatize the CBC and give private health insurers access to the health care system

We dodged a major bullit getting rid of him

This is all Bank of Canada propaganda because the BOC is pro Tory

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