Monday, December 9, 2019

 


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Bank of Canada senior deputy governor says global economic picture has worsened

MONTREAL — The senior deputy governor of the Bank of Canada says the global economic picture has worsened, increasing risks to global growth and chances of financial stress that could spill over into Canada.

Carolyn Wilkins says the Bank of Canada isn't predicting a global recession, given that global monetary policy conditions have eased in recent months, but noted the U.S.-China trade war is a major concern.

In a speech to the International Finance Club of Montreal, Wilkins also pointed to Brexit, tensions in the Middle East and unrest in Hong Kong and some countries in Latin America as adding to the uncertainty.

However, she noted that Canada is ready to face a global storm if one comes and the financial system is in a good position to weather it.

Wilkins says Canada has made progress in reducing domestic financial vulnerabilities over recent years including household debt and the housing market.

The Bank of Canada kept its key interest rate target on hold at 1.75 per cent last month, but noted its concerns about the global economy at the time.

This report by The Canadian Press was first published Nov. 19, 2019.

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