posted on Jan, 22 2009 @ 07:50 PM
After recently dropping our interest rate to the historic low of 1%, Bank of Canada Governor Mark Carney said today that Canada will return to
positive growth by the 3rd quarter of 2009.
This announcement contradicts most other economists predictions that I have heard or read for Canada. Also, our jobless numbers are climbing, like a
lot of other places around the world. He also seems to downplay the global reach of this recession and feels Canada is insulated enough to bring us
out quicker than the rest.
This forecast also comes just before our Federal Budget is tabled, which is predicted to bring us to about 34 Billion dollars in the red for this
fiscal year and another 30 billion or so in 2010. Most Economists that I have heard or read agree that this isn't the way to go and won't help our
economy out of this mess. Am I missing something then? Is this just the BoC stating what the masses want to hear?