Canada says pandemic aid has limits as central bank boss warns of long slog to recovery

  • 10/29/2020
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OTTAWA (Reuters) - Canada’s finance minister said on Wednesday for the first time that federal pandemic aid to households and businesses had limits as the Bank of Canada chief warned of a “long slog” toward a post-coronavirus economic recovery.In an interview with Reuters, Bank of Canada Governor Tiff Macklem noted that U.S. fourth-quarter growth could be even weaker than projected, hurting Canadian exports. Finance Minister Chrystia Freeland, speaking at a Toronto economic forum after the central bank said it expected interest rates to stay at a record low until sometime in 2023, said that “there are no blank checks ... no free lunches.” “Our fiscally expansive approach to fighting the coronavirus cannot and will not be infinite. It is limited and temporary,” she said. But later this year, the government will deliver “targeted, carefully thought-out investment – on a meaningful scale,” Freeland added after the central bank, in an update of its economic projections, said a second wave of coronavirus infections would hurt Canada’s near-term growth. New infections have surged in recent weeks, leading to targeted restrictions. The

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