Economics

Trudeau Fiscal Plan Doesn't Move the Needle for Bank of Canada

Canada’s Morneau talks about the budget, the economy, the bilateral relations with China, and trade deals.(Source: Bloomberg)
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Canada’s monetary policy makers probably won’t be getting much of a boost from their fiscal counterparts this year.

Finance Minister Bill Morneau’s 2019-20 budget, unveiled Tuesday in Ottawa, includes new spending of C$4 billion ($3 billion) in the coming year, representing just 0.2 percent of gross domestic product and 1.2 percent of total program expensesBloomberg Terminal. That’s unlikely to provide any significant jolt to the economy, and will probably leave the Bank of Canada’s expectations for government spending relatively unchanged.