Part 7/9:
Monetary Policy and Fiscal Stimulus
Looking forward, Rosenberg predicted that the Bank of Canada would likely enact interest rate cuts as a response to the economic squeeze. He emphasized that, while inflation shapes immediate concerns, the overarching trend of economic contraction would overshadow these inflationary pressures.
His outlook on fiscal policy indicated a call for substantial stimulus measures to offset the expected downturn. He signaled that Canada has the fiscal room to act decisively, recommending strategies that might include reduction of corporate tax rates to attract foreign investment.