Economics
The Sky’s the Limit for Stimulus in Canada’s Bid to Salvage Economy
- Government and central bank team up against coronavirus
- Tools includes credit easing, tax deferrals and rate cuts
This article is for subscribers only.
Canada’s policy makers unleashed the full power of the state on Friday, pledging open-ended support that could result in the largest government intervention in the economy since World War II.
In a coordinated response to an increasingly bleak outlook, Prime Minister Justin Trudeau’s government doubled its existing stimulus package, while the Bank of Canada cut interest rates to a record low and began a massive asset purchase program to flood markets with cash.