Canada rate cut clearly driven by oil price drop: finance minister

Wed Jan 21, 2015 11:21am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

DAVOS, Switzerland (Reuters) - Canada's Finance Minister Joe Oliver said on Wednesday that a decision by the country's central bank to cut interest rates had been clearly influenced by a decline in the price of oil.

Ending the longest period of unchanged rates since 1950, the central bank cut the overnight rate to 0.75 percent from 1 percent, where it had been since September 2010, and it dramatically slashed its inflation and growth outlook for the coming year.

Oliver declined to offer a judgment on the wisdom of the decision, citing central bank independence, but told a panel at the World Economic Forum in Davos that the oil price had "clearly influenced" the move.

(Reporting by Noah Barkin)

Canada's Finance Minister Joe Oliver speaks during Question Period in the House of Commons on Parliament Hill in Ottawa November 20, 2014. REUTERS/Chris Wattie