18 October 2012

This year’sbudget, published in March, suggested the fiscal deficit should be reduced gradually and a return to a small surplus was expected in 2015/16. Nevertheless, weaker growth forecasts may postpone this moment.
That’s another indicator that interest rates will stay low for a foreseeable future. Bank of Canada simply cannot afford to remove stimulus until economy will get back on track.

Leave a Reply

Your email address will not be published.