Finance Minister Jim Flaherty’s determination to balance Canada’s budget in two years increases the likelihood the government will lean on Mark Carney’s replacement at the head of the Bank of Canada to boost growth in the nation’s economy.
Flaherty’s plan to eliminate the deficit in time for elections in 2015 limits scope for further fiscal stimulus and increases the responsibility for the country’s next central banker to take the lead in responding to any economic slowdown.
The Bank of England was unanimous in its decision to maintain its record-low interest rates earlier this month, minutes showed on Wednesday. The central bank's Monetary Policy Committee (MPC) voted 9-0 to keep its key lending rate at 0.50 percent, where it has stood since March 2009 to stimulate growth, amid Britain's strengthening economic recovery.
The global recession which started in Europe, is strengthening led by further declines in the eurozone. Markit reports Eurozone sees steepest contraction since June 2009 despite downturn easing in Germany.