After rate cut, Canada PM's office says global woes hit economy

Wed Jul 15, 2015 3:20pm EDT
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By Allison Lampert

OTTAWA, July 15 (Reuters) - Canadian Prime Minister Stephen Harper's office said after the central bank cut rates on Wednesday that the global economy is fragile and his rivals could not be trusted to govern in such a difficult environment.

The statement came after the Bank of Canada cut its benchmark interest rate for the second time this year to combat a shrinking economy, a move that drove the Canadian dollar to a six-year low.

"The global economy remains fragile and is being dragged down by forces beyond our borders such as global oil prices, the European debt crisis, and China's economic slowdown," Harper spokesman Stephen Lecce said in a statement.

The cooling economy creates a challenge for Harper, who faces an October election. His Conservative party campaigned successfully during the three previous elections on a platform of fiscal prudence.

The statement said Liberal leader Justin Trudeau would not be able to manage Canada's economy, while NDP leader Thomas Mulcair would offer "high tax, high debt policies."

The opposition parties could not immediately be reached for comment. (Reporting By Allison Lampert; Editing by Jeffrey Hodgson and Meredith Mazzilli)