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.
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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.
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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.