Bank of Canada unleashes billions to aid economy in what will likely be most severe recession ever

The Bank of Canada has returned to the barricades with a satchel of new weapons to fight the economic fallout from COVID-19.

The new operations will expose the central bank to tricky political considerations, since provincial and corporate leaders could see the Bank of Canada’s support efforts as an opportunity to delay difficult decisions. But the gravity of the situation outweighs concerns about moral hazards, at least for now. The Bank of Canada in its latest quarterly economic report said Canada likely is facing its most severe recession ever.

Policymakers added: “All the bank’s actions are aimed at helping to bridge the current period of containment and create the conditions for a sustainable recovery and achievement of the inflation target over time.” “None of these can be forecast with any degree of confidence,” the Bank of Canada said in its latest quarterly economic report, released April 15.The International Monetary Fund this week said the “Great Lockdown” will cause global GDP to contract by three per cent this year, the deepest since the Great Depression, followed by growth of 5.8 per cent in 2021. The fund predicts Canada’s economy will collapse by 6.

That’s the price governments knew they would have to pay to slow the spread of the virus. The unknown is whether the economy will be the same once officials turn it back on. The Bank of Canada noted that many of the industries that have suffered the most from the lockdown, including accommodation and food, tend to have high job turnover, suggesting they will be able to resume operations without much delay.

CarmichaelKevin Taxes will be going higher in the years to come... that much is sure!

CarmichaelKevin First time ever! 'start buying up to $50 billion in provincial debt'

CarmichaelKevin ‘unleashes billions’? n still lines of credit running at 5.5% TD_Canada waiting BrianPallister CameronFriesen if no grants soon then get on banks JustinTrudeau CFIB

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank of Canada set to detail impact of COVID-19, outlook for economyCanada's central bank will make an announcement today on its key interest rate and detail the impact of COVID-19 on the national economy. This will be interesting This better be good This is going to be an interesting report.
Source: CP24 - 🏆 30. / 67 Read more »

Bank of Canada set to detail impact of COVID-19, outlook for economyCanada's central bank will make an announcement Wednesday on its key interest rate and detail the impact of COVID-19 on the national economy. Great Depression v2.0! Austerity, here we come!
Source: CTVNews - 🏆 1. / 99 Read more »