Jan 21, 2016
By Jane Brown
Asian stock markets tumbled today as the price of oil drifted lower and sentiment remained fragile following big swings on Wall Street. But European markets are trending higher today.
The International Monetary Fund lowering its forecast for global growth this year, oil falling below $30 U.S. a barrel, and China’s growth slowing to a 25-year low in 2015 have all contributed to a global sell-off this week.
Meantime, after the Bank of Canada held its trendsetting policy rate at point five percent, the pressure is now on Canada’s Finance Minister to deliver a budget that will quickly boost economic growth.
Bill Morneau is expected to unveil the Trudeau Liberals first financial document sometime in March. It’s expected to offer billions in deficit financed spending on infrastructure projects such as public transit, social housing and green energy.
Many experts say the Bank of Canada has done all it can to boost the economy.
“We don’t need lower interest rates, the housing market does not need lower interest rates, and monetary policy, the Bank of Canada cannot help the economy at this point. It’s all about oil prices and it’s all about fiscal policy, so not cutting was the right decision,” explained CIBC World Markets Deputy Chief Economist Benjamin Tal to Zoomer Radio’s Goldhawk Fights Back.
The European Central Bank is also expected to keep ultra-low interest rates on hold when its governing body meets today.