Stress in Canada’s financial system this week amid the spread of the coronavirus pandemic has risen to levels unseen since the days prior to the September 2008 meltdown of the global financial system. … READ MORE >
Bank of Canada
Coronavirus impact on Canadian economy calls for more government action
There is no question COVID-19 will significantly wound the Canadian economy. The big question governments and policymakers have to grapple with is whether the downturn will be short term or longer term in nature. Indeed, the answer to this question will help to guide the appropriate fiscal policy response. … READ MORE >
Bank of Canada lowers policy rate in response to health crisis
Canada’s central bank moved aggressively to drop its policy rate by 50 basis points, to 1.25%, following action taken by the Federal Reserve on Tuesday. … READ MORE >
Holding interest rates steady, Bank of Canada keeps the door open for a cut
The tone of the Bank of Canada’s policy statement would imply that it stands ready to cut rates to bolster the domestic economy should growth slow. … READ MORE >
The Bank of Canada’s dilemma — stability versus rate cut
While maintaining the overnight rate at 1.75% would appear to be prudent at the very least, we would argue that the Bank of Canada should strongly consider cutting rates in the near term. … READ MORE >