policy
BC’s provincial government continues to bide its time on the policy front while municipal governments and central banks steal the headlines.
CENTRAL BANKS: RECESSION AVOIDED, COMMENCE THUMB-TWIDDLING? The use of the “r”-word—recession—was greatly elevated throughout North America over the past year, with countless professional
In this country, the Bank of Canada has maintained its so-called overnight target rate at 1.75% since October 2018, while the Federal Reserve reduced its by 25 basis points on three separate occasions in 2019 into the 1.50-1.75% range today and now expects to assess the impacts before acting again. Additionally, the European Central Bank appears content to stay at its current -0.5% for the forseeable future. For 2020, this means rates will likely remain at their historically-low levels, benefiting borrowers and spurring consumers to spend their income.
and armchair economists predicting the imminent end of the post-Credit Crunch economic run. While rennie was much less bearish, Central Banks around the world acted swiftly to stave off the negative impact of declining economic activity by, in some cases, aggressively reducing short-term interest rates and, in other instances, halting rate-increasing regimes (knowing that Central Banks can act this way was one reason we have consistently viewed our economic prospects more optimistically than others).
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