OTTAWA If Canadians start spending the massive nest egg they have amassed during the coronavirus pandemic it could “meaningfully affect” economic growth, a…
If Canadians start spending the massive nest egg they have amassed during the coronavirus pandemic it could meaningfully affect economic growth, a top Bank of Canada official said on Thursday,.
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OTTAWA (Reuters) - If Canadians start spending the massive nest egg they have amassed during the coronavirus pandemic it could “meaningfully affect” economic growth, a top Bank of Canada official said on Thursday, suggesting this might even speed up the pace of rate hikes.
FILE PHOTO: A sign is pictured outside the Bank of Canada building in Ottawa, Ontario, Canada, May 23, 2017. REUTERS/Chris Wattie
Canadians on average spent C$4,000 less in 2020 and this, coupled with higher household incomes due to emergency aid transfers, adds up to C$180 billion ($143.6 billion) in excess pandemic savings, Deputy Governor Lawrence Schembri said.
If Canadians spend pandemic cash hoard, recovery could be strengthened - BoC deputy reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
Investors Brace for Bank of Canada Taper: Decision-Day Guide
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(Bloomberg) The Bank of Canada could soon start pulling back stimulus from the nation’s surprisingly robust economy, with the first clues on its next moves coming as early as today.
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Economists unanimously predict policy makers led by Governor Tiff Macklem will leave their key interest rate unchanged at 0.25% at a 10 a.m. decision Wednesday in Ottawa. There’s speculation, however, they could signal plans to pare back the central bank’s asset purchases at the next meeting in April.
While Macklem has long indicated such a move would be required once the recovery takes hold, the economy is running at a much faster clip than the Bank of Canada has been projecting potentially forcing it into action.