Free Trial
JGB TECHS

(Z2) Stable at a Lower Level

JGBS

Firmer On Wider Impulse

KRW

Familiar Themes Still Driving Won Gains

US TSYS

Firmer On Tuesday, Midterms On Deck

AUSSIE 10-YEAR TECHS

(Z2) Primary Trend Direction Remains Down

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI: Canada Should Pare Deficits With Fiscal Anchor, IMF Says

(MNI) OTTAWA

Recommendation comes before fiscal update due Thursday.

Canada should reduce budget deficits and implement a stronger fiscal "anchor" to keep things on track, the IMF said just before Finance Minister Chrystia Freeland gives a fiscal update expected to show a windfall after the end of most Covid restrictions.

Smaller deficits would help slow inflation and the government could add to stability by adopting more rules-based automatic stimulus programs, the IMF said Wednesday in a Regional Economic Outlook for the Western Hemisphere. "To enhance fiscal credibility and transparency, the federal government could strengthen its medium-term fiscal framework by adopting a specific debt anchor, supported by an operational rule to determine how the fiscal position reverts to the debt anchor after shocks," the IMF said.

Keep reading...Show less
238 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Canada should reduce budget deficits and implement a stronger fiscal "anchor" to keep things on track, the IMF said just before Finance Minister Chrystia Freeland gives a fiscal update expected to show a windfall after the end of most Covid restrictions.

Smaller deficits would help slow inflation and the government could add to stability by adopting more rules-based automatic stimulus programs, the IMF said Wednesday in a Regional Economic Outlook for the Western Hemisphere. "To enhance fiscal credibility and transparency, the federal government could strengthen its medium-term fiscal framework by adopting a specific debt anchor, supported by an operational rule to determine how the fiscal position reverts to the debt anchor after shocks," the IMF said.

Keep reading...Show less