Canada

: Oil shock will hurt but will be short lived, Poloz says Time to stop waiting for America economic recovery: Don Pittis Already Canada is seeing investors move away from its bond and equity markets as they seek out a surer return in the U.S., the bank says, according to CBC. Author Emanuella Enenajor says Canadian central bank governor Stephen Poloz is "handcuffed by the Fed," which is expected to raise rates later this year. Bank of America says Canada economy will underperform the U.S. this year, hampered by low oil prices and worries over manufacturing competitiveness. U.S., Canadian economies on different paths Bank of America says Bank of Canada governor Stephen Poloz will be 'handcuffed by the Fed' into raising rates. "Even as the Fed begins a gradual rate hike cycle this year, we think the Bank of Canada will remain accommodative, and will likely ease by another 25 basis points to 0.5 per cent if growth disappoints, as we expect," she wrote in a report released today. A 1 per cent increase in US domestic demand lifts Canadian GDP by about 0.25 per cent under current conditions. She points to a decoupling of the Canadian and U.S. economies, so that growth in the U.S., which is expected to be robust, will not have the stimulating effect on the Canadian economy it did in the early 2000s. (news.financializer.com). As reported in the news.