January 21, 2015 / 4:24 PM / 4 years ago

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

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

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

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below