Canada Economics

Morneau gets competitive; Bank ponders framework

Canada Economics Weekly
Written by Capital Economics Economist

The increased depreciation tax allowance in the fall update was generally well received by businesses, but the recent slump in oil prices means that it is unlikely to prevent investment growth from slowing next year. While the Bank of Canada has said that it will assess different monetary frameworks ahead of its next five-year review, a bigger issue is whether it has enough ammunition to fight the next downturn.