Bank of Canada says virus outbreak could worsen already shaky Canadian, global economy

06.02.2020 - Kulakov Vladimir
Bank of Canada says virus outbreak could worsen already shaky Canadian, global economy

The 2019 coronavirus outbreak has interrupted economic activities and production on a global scale after infecting thousands of people in China. A continued interruption of supply chains even might cost a lot of problems to the economy of Canada and the rest of the world, according to an official of A Canadian bank on Wednesday.

“It’s never a good time to have an outbreak like this, but when the global economy is feeling a little fragile, (and) we’ve got mixes data in Canada, it’s certainly not great timing,” said Senior Deputy Governor Carolyn Wilkins.

Canada’s central bank has kept its rates level since October 2018 but expressed a possible cut within the year if economic slowdown persists.

As of writing, there are already 490 people who died from coronavirus in China while Canada has five reported cases of coronavirus. Wilkins emphasized the possibility of an economic downgrade due to the spreading virus even if the epicenter was not domestic.

“It can come through lower oil prices, lower commodity prices – we see a bit of that,” Wilkins said.

Wilkins said that the bank would have to look at the effects and aftermath of the outbreak, depending on its duration.

“If it lasts longer, then we’d have to think about what risk management looked like in that space,” she closed.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?