Canada finance minister says budget created conditions for cut in interest rates

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OTTAWA - Canada's Finance Minister Chrystia Freeland said on Tuesday that the federal budget presented to the Parliament last month had created conditions for interest rates to come down.

The federal budget, presented on April 16, has increased new spending by over C$50 billion over the next five years, prompting analysts and economists to say that it could likely stoke inflation and prevent from interest rates coming down earlier than the BoC could. BoC Governor Tiff Macklem said last month that the federal budget had not significantly altered Canada's fiscal path.

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