The Bank of Canada announced it would be cutting key interest rates amidst weak economic performance and sluggish GDP growth. With Q2 growth foretasted at -0.5%, Canada is beginning to fall under the “recession” moniker.
The Conservative party was calling it a mere “downturn” and hoped their image as economic vanguards would prevail as they head to a federal election this October. There’s little doubt that the Bank of Canada’s forecasts puts Canada in a fiscal deficit once more.
What will happen to the pledge of a balanced budget? The Harper government could enact emergency cost-cutting measures. Maybe they’ll abolish the Bank of Canada. For fiscal prudence.
A surplus was the cornerstone of the Conservative’s election platform. Finance Minister Joe Oliver presented the government’s delayed federal budget in April, with various changes to accommodate a steep drop in oil prices. It looks like there will be more work to do. The NDP is currently riding on a surge in nationwide support. The Bank of Canada’s announcement could solidify Thomas Mulcair’s gains well into October.
Investment in Canadian business has plummeted by 16%. Investment in the oil sands is 10% less than expected. It’s clear we need a hero to save us from this economic peril.
There is one man. He’s not the hero we deserve, but the one that we need.
Batman Mark Carney.