The central bank has spent the last two months making a flurry of policy decisions that has seen it slash its target interest rate and embark on an unprecedented bond-buying program to ease the flow of credit.
these measures have helped ease liquidity strains and provide easy access to short-term credit for companies and households.But it is warning this morning that a cash-flow problem for businesses seeing sharp revenue declines during the crisis could soon develop into a solvency issue. The Bank of Canada's review of the country's financial system says market prices point to a concern that defaults are likely to rise.
The report also raises concerns that household debt levels are likely to rise and become acute for households whose incomes don't fully recover from the pandemic.
Duuuhhhhhh
Ummm what
That's the effect of no income but you still need to buy food and pay bills, you don't need an weast of space expert to tell us that.
But monreau just said in question period the government is keeping people from going into debt. It’s almost like he lied!
Uhuh, doesn't take a rocket scientist to figure that out...
Why are the banks worrying? They will do what they always do no matter if it's a great depression or pandemic. They will foreclose peoples homes, and land, and kick everyone out on the street like they always do when they are faced with not being able to give themselves bonus.
Wow, experts also warn of clouds in the sky.
The cure for the pandemic is worse than the virus!
In Justin Trudeau's Canada: 🇨🇦Senior citizens will get a one-time payment of $300. 🇨🇳Foreign students including Chinese nationals will get up to 16 weekly payments of $500.
Then maybe CanadianPM better wake the fu*k up!
No shit Sherlock...
No problem, just let the Trudeau gang keep the money presses running 24/7 for years to come to give away free money loans.
You mean those credit card bills didn't pay themselves off when the gov't laid off the country?
Relax Canadians we have a man in charge that's gonna save us all
No surprise there.
Thanks Justin.
Yeah...Bank of Canada better contact Trudeau instead of harassing good people just trying to make ends meet in an impossible situation
In other breaking news, Fisheries and Oceans warn that water is wet. More to come...
Hang on, could there be a correlation between rising debt and shutting down the economy? Hmmm, Trudeau better put together a committee to study this.