- Published: 30 January 2015
- Written by Editor
By: Theophilos Argitis Bloomberg, Published on Fri Jan 30 2015
OTTAWA —The Bank of Canada’s decision earlier this month to counter falling oil prices with a rate cut was appropriate, the International Monetary Fund said.
The Washington-based fund also said the country’s federal government, which is on track to balance its budget this year, should consider putting future fiscal tightening on pause to promote growth.
“Maintaining monetary accommodation along with gradual fiscal consolidation at the general government level would be conducive to achieving a growth composition with stronger exports and, thereby, investment in the economy,” the IMF said.
Canada’s economy will expand 2.3 per cent this year, little changed from the 2.4 per cent pace in 2014 even with slumping oil prices, as the nation benefits from a stronger U.S. recovery, the IMF projected.
