Despite a rapidly deteriorating outlook, the Bank of Canada defended its recent inaction on interest rates on the basis of it not knowing the details of the upcoming Federal budget, due to be delivered sometime in April. But if that budget fails to admit the size of the hole that the slump in oil prices has pushed the economy into, then the Federal government could end up under-estimating how much fiscal stimulus is needed. We get the sense that policymakers are stalling for time amid the uncertain outlook.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services