Advertisement

Liberal government budget measures to be scrutinized in Bank of Canada report

Click to play video: 'Bank of Canada’s interest rate stays steady during turbulent economic times' Bank of Canada’s interest rate stays steady during turbulent economic times
WATCH ABOVE: While it's keeping its interest rate the same, the Bank of Canada is warning of a tougher financial future, as the Conservatives suggest a deficit may be in order. Eric Sorensen reports – Jan 20, 2016

OTTAWA – The Bank of Canada is delivering an eagerly awaited assessment today on the Canadian economy.

The central bank’s assessment on how much of a lift it expects the economy to get from billions in federal government spending commitments coincides with its announcement on its key interest rate.

READ MORE: Loonie soars above 78 cents US as oil pushed higher

It’s the first monetary policy report from the Bank of Canada since the Liberal government tabled its March 22 budget.

That economic blueprint contained billions of dollars worth of spending measures and tax relief.

To help fund the plan, the budget projected five-straight annual deficits totalling more than $110 billion, starting with a $29.4-billion shortfall in 2016-17.

READ MORE: IMF cuts Canadian, global growth forecasts

The Finance Department estimates the Liberal budget, which includes measures to boost infrastructure investments and tax relief for middle- and low-income households, will generate economic growth of 0.5 per cent this year and one per cent in 2017-18.

Advertisement

Sponsored content