Money: Bank of Canada senior deputy governor says global economic picture has worsened - - PressFrom - Canada
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Money Bank of Canada senior deputy governor says global economic picture has worsened

23:27  19 november  2019
23:27  19 november  2019 Source:   msn.com

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Senior Deputy Governor Carolyn Wilkins said the central bank is not forecasting a recession at home or world-wide, but reiterated the global economy is Respondents cited a deterioration in the global economic outlook, a cyber incident and geopolitical risk as key risks to the Canadian financial system.

Bank of Canada Deputy Governor Carolyn Wilkins cautioned against complacency in the face of financial stability risks at a time of growing global uncertainty. “The global context has worsened And while Canada 's economy is performing well overall and financial vulnerabilities have stabilized

a close up of Carolyn Wilkins © Provided by Canadian Press Enterprises Inc

MONTREAL — The global economic picture has worsened, increasing risks to global growth and chances of financial stress that could spill over into Canada, the senior deputy governor of the Bank of Canada said Tuesday.

In a speech to the International Finance Club of Montreal, Carolyn Wilkins said the Bank of Canada isn't predicting a global recession, given that global monetary policy conditions have eased in recent months, but noted the U.S.-China trade war is a major concern.

Wilkins also pointed to Brexit, tensions in the Middle East and unrest in Hong Kong and some countries in Latin America as adding to the uncertainty.

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The Bank projects that Canadian economy will grow by 1.5 percent this year, 1.7 percent in 2020 and 1.8 percent in 2021. Measures in place to help safeguard the Canadian financial system in a challenging global environment — Senior Deputy Governor Carolyn A. Wilkins of the Bank of

The deputy governor added at a news conference that the Bank of Canada has been accounting for trade issues in its economic forecasts for several TD Bank senior economist Brian DePratto said Schembri went a bit further than the bank ’s short statement Thursday, emphasizing both a perceived

"With storm clouds gathering, we can't let our guard down," she said.

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"This is even more important given that high global leverage would amplify any global downturn, especially if it became a recession."

Wilkins noted that global debt is higher than it was before the Great Recession, leaving many households, businesses and governments vulnerable.

"It also means that an economic downturn could be deeper than usual and fraught with financial stresses," she said.

The Bank of Canada kept its key interest rate target on hold last month at 1.75 per cent, but noted its concerns about the global economy at the time.

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Senior deputy governor says the trade war is a wild card for the global economy and trade-dependent countries like Canada . Bank of Canada senior deputy governor Carolyn Wilkins says the deepening dispute between the U.S and China was a main point of discussion ahead of the

Senior Deputy Governor Wilkins discussed how having more broad-based economic growth makes it more likely that it will be sustainable over the medium “What’s encouraging is that this growth is not being driven by just a few key industries,” Senior Deputy Governor Wilkins said . The data show that

The decision by the central bank came as other central banks around the world have moved to reduce interest rates and loosen monetary policy in response to concerns about a slowing global economy.

"Our policy interest rate may be relatively low now, but at 1.75 per cent we still have room to manoeuvre. And, we have other options in our tool kit, such as extraordinary forward guidance and large-scale asset purchases," Wilkins said.

TD Bank senior economist Brian DePratto said the speech Tuesday appeared to be a continuation of the Bank's dovish-to-neutral tone.

"The bank recognizes that Canada isn't immune to the challenges affecting global growth, but at the same time, financial stability concerns mean that the bar to rate cuts is higher than it would otherwise be," DePratto wrote in a report.

"We're left with the sense that the bank still wants to see 'the whites of their eyes' in terms of a data deterioration before they take action. Per their last interest rate decision, housing and consumer spending are still the key barometers on this front."

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Canadian wages will go up, Bank of Canada deputy governor says . Wage growth is on the horizon as Canada ’s economy rebounds from weak oil prices and a decelerating housing market “We expect the economic expansion to pick up again after this detour in the second quarter of 2019,” she said .

FILE PHOTO: Bank of Canada Senior Deputy Governor Carolyn Wilkins poses for a photograph following an The Bank of Canada - which has hiked rates five times since July 2017 - stayed on She also spoke about rising non-financial corporate debt as investment funds have filled a gap left by

Wilkins said Canada is ready to face a global storm if one comes and the financial system is in a good position to weather it.

She said Canada has made progress in reducing domestic financial vulnerabilities including household debt and imbalances in the housing market over recent years. However, she added that despite the progress in addressing vulnerabilities, household debt is still elevated.

"We also see that mortgage credit growth and home housing prices have started to pick up again," she said. "The market has been boosted by a drop in mortgage rates. And the share of new mortgages going to highly indebted borrowers has started to creep up."

This report by The Canadian Press was first published Nov. 19, 2019.

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Bank of Canada keeps key interest rate target on hold at 1.75 per cent .
Bank of Canada keeps key interest rate target on hold at 1.75 per centThe central bank's overnight rate target has been set at 1.75 per cent since October of last year.

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