Bank of Canada warns of excess business, household debt from COVID-19 cdnpoli
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.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada surpasses 5,000 deaths connected to COVID-19Canada has now recorded more than 5,000 deaths connected to COVID-19, marking another grim milestone in the country's fight against the novel coronavirus.
Read more »
Health Canada approves first test to detect antibodies for COVID-19Health Canada has approved a test that can detect antibodies specific to COVID-19 in an individual’s blood, allowing Canadian labs to take a significant step forward in understanding immunity against the disease.
Read more »
Canada Approves 1st Test For COVID-19 AntibodiesAt least one million blood samples will be collected and tested over the next two years to track the virus.
Read more »
Western Canada: COVID-19 symptoms discovered in eight temporary foreign farm hands while isolatedBritish Columbia, Prince Edward Island are only two provinces that require TFWs to go into government-operated quarantine upon arrival
Read more »
Evening Update: China ramps up intimidation tactics in Canada, report says; Ottawa announces COVID-19 relief payment for seniorsAlso: Fauci warns of ‘serious’ consequences if U.S. states reopen too quickly
Read more »