1.Bank of Canada leaves key interest rate unchanged at 2.5%
The Bank of Canada left a key interest rate unchanged on Tuesday but dropped a major hint that rates will be heading up soon. Economists widely expect the bank will boost rates in the autumn. The bank's next decision date is set for Sept. 7. The bank said the economy is predicted to operate near full capacity this year and next, and that inflation is predicted to hit 2 per cent by the end of 2006.
2.Oil rides storm fears higher: Tuesday, July 12, 2005 Updated at 4:15 PM EDT, Associated Press with Globe and Mail Update
Oil prices jumped almost $2 (U.S.) a barrel while natural gas futures closed at three-month highs Tuesday amid worries that summer storms in the Gulf of Mexico could curtail petroleum output.
Meanwhile, the Organization of Petroleum Exporting Countries said it was again ready to do its best to lower prices by releasing additional barrels. Earlier OPEC pledges were shrugged off by the market.
The official Kuwait News Agency quoted cartel spokesman Abdul Rahman Al-Khareiji as saying Monday it was prepared to add 500,000 barrels to help rein in prices, now 50 per cent higher from a year ago.
“If prices continue to bounce around current levels, I believe there is sufficient will among OPEC members to have a quota increase in place soon,” Mr. Lee said. “Should we see prices retreat in the coming days however, all that talk about output increase will evaporate.”
