Structural weakness weighs on Canada exports -central bank

(Adds comments on monetary policy, Canadian dollar)By Richard Woodbury Nov 8 Structural weaknesses are
weighing heavily on Canada’s export sector but an improved mix
of fiscal and monetary policy has taken some pressure off the
central bank to stimulate demand, a senior Bank of Canada
official said on Tuesday.Bank of Canada Deputy Governor Lawrence Schembri also said
Governor Stephen Poloz believes the central bank still has
unconventional tools left it can use to stimulate demand, but
that the mix of fiscal and monetary policy in Canada is moving
in a better direction.”Achieving that better balance is really important for us
because it relieves some of the pressure on the central bank to
boost aggregate demand and reach our inflation target,” Schembri
told an economic policy think tank audience in Halifax.

The federal Liberal government said last week the budget
deficit would reach C$25.1 billion ($18.8 billion) in the
2016-2017 …
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