Economics
Canadians Buck Global Austerity, Giving Central Bank a Breather
- Odds of Bank of Canada rate cut drop on Trudeau spending plan
- Calls for more fiscal stimulus growing in other countries
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With governments in the developed world leaning ever more on their central banks to stimulate flagging growth while curbing their own fiscal firepower, Canada is breaking from the pack.
The country’s national election Monday replaced an austerity-minded Conservative government with a Liberal one planning deficit-financed stimulus spending. The market almost immediately started paring bets the Bank of Canada will be forced to do any more of its own stimulus, after two interest-rate cuts earlier this year.