Finance Minister Jim Flaherty’s determination to balance Canada’s budget in two years increases the likelihood the government will lean on Mark Carney’s replacement at the head of the Bank of Canada to boost growth in the nation’s economy.
Flaherty’s plan to eliminate the deficit in time for elections in 2015 limits scope for further fiscal stimulus and increases the responsibility for the country’s next central banker to take the lead in responding to any economic slowdown.
The Bank of England was unanimous in its decision to maintain its record-low interest rates earlier this month, minutes showed on Wednesday. The central bank's Monetary Policy Committee (MPC) voted 9-0 to keep its key lending rate at 0.50 percent, where it has stood since March 2009 to stimulate growth, amid Britain's strengthening economic recovery.
WASHINGTON — The U.S. economy unexpectedly contracted in the fourth quarter, suffering its first decline since the 2007-09 recession as businesses scaled back on restocking and government spending plunged.
Gross domestic product fell at a 0.1% annual rate after growing at a 3.1% clip in the third quarter, the Commerce Department said on Wednesday.
That was the worst performance since the second quarter of 2009, when the recession ended, and showed the economy entering the new year with no momentum.