Europe must break down its internal barriers to move away from a growth model that is driven by exports, European Central Bank President Christine Lagarde said.
In a speech to bankers Friday, Lagarde also highlighted Europe’s vulnerability to the “weaponization” of key raw materials and technologies.
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The European Central Bank’s key interest rate is unlikely to change unless the eurozone economy is hit by another big shock, a member of its executive board said Wednesday.
The ECB last month left its key rate at 2% for the third straight meeting, with inflation close to its target.
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OTTAWA—Bank of Canada Gov. Tiff Macklem told lawmakers Wednesday that central-bank policymakers believe the current rate policy appears appropriate to balance inflation risks while providing the economy with support.
His opening remarks before the Canadian legislature’s finance committee largely mirrored his comments when announcing a quarter-point cut last week, taking the benchmark interest rate to 2.25%—or 2.75 percentage points lower over a 16-month period.
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Paul Vieira
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The central bank place will more emphasis on developments that could upend its expectations and less on forecasts that convey too much certainty about the future.
Paul Hannon
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OTTAWA—The Bank of Canada signaled it has emptied its toolbox to help an economy hurting from the trade row with the U.S.
Canada’s central bank cut its main interest rate on Wednesday, to 2.25%, and said the rate is “at about the right level” to keep inflation intact at its 2% target. It’s taking this approach even though its own economic outlook is bleak over the next two years.
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Paul Vieira
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Russia’s central bank on Friday lowered its key interest rate for a fourth straight meeting as an already slowing economy braces for the impact of fresh sanctions from the U.S. and the European Union in response to President Vladimir Putin’s continued war on Ukraine.
The Bank of Russia cut its key rate to 16.5% from 17%, having begun to lower borrowing costs from a recent peak of 21% in June. The move was smaller than previous cuts.
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Paul Hannon
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OTTAWA—Canada’s banking regulator said the watchdog would issue proposals in the coming months to ease capital-buffer requirements amid the abrupt change in the geopolitical dynamics fueled by President Trump’s tariff policy.
Peter Routledge, the head of the Office of the Superintendent of Financial Institutions, said domestic lenders “argue that the shift before us demands more intelligent risk-taking, risk-taking to help economies shift their economic model to the world emerging.”
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Paul Vieira
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OTTAWA—The Bank of Canada’s No. 2 official endorsed a competition shakeup in the highly concentrated financial-services industry, saying the country’s banking sector is an oligopoly and changes could help lift Canada’s prolonged productivity slump.
Carolyn Rogers, the central bank’s senior deputy governor, on Thursday said Canadian authorities have done a stellar job in regulating banks by ensuring they have enough capital to survive shocks such as the 2008-09 financial crisis and the Covid-19 pandemic. “It would also be hard to argue, on any objective measure, that Canada’s banking system is anything other than an oligopoly,” Rogers told a blue-chip Toronto audience.
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Paul Vieira
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