Support coming for Canadians quarantined due to coronavirus, finance minister says | CBC News
Liberal government will increase the risk adjustment provision in the upcoming budget
Finance Minister Bill Morneau says support is coming for Canadians who have to be quarantined in order to prevent the spread of the novel coronavirus.
“We know that in the face of rising uncertainty, Canadian businesses — just like workers and families — are feeling the impacts. Although things are changing quickly, it’s clear that the COVID-19 outbreak is going to impact the real economy, and markets,” he said during a speech Friday morning at Canadian Club Toronto.
His speech ends a week that saw the Bank of Canada cut its key interest rate target by half a percentage point, dropping it to 1.25 per cent, and said it was prepared to cut further if needed to help tackle the economic shock from the novel coronavirus outbreak.
Concerned about the potential economic fallout of an outbreak, the Liberal government will also increase the risk adjustment provision — also known as a contingency fund — in the upcoming budget “to ensure that we are ready and able to respond,” said Morneau.
Last year’s risk adjustment pot was $3 billion.
“We are continuing to monitor the impact on businesses and workers. We have the tools to respond quickly,” said Morneau.
“It’s important to keep in mind that what this will mean for the Canadian economy ultimately depends on the depth and geographical spread of the virus. And these things cannot be known, until they are known.”
Resilience of Canadian economy could be ‘seriously tested’
The number of people around the world infected with the novel coronavirus moved toward 100,000 Friday, including more than 40 cases in Canada. Health officials in B.C. are investigating after a woman who had no travel history to areas dealing with a coronavirus outbreak and hadn’t been in contact with COVID-19 patients tested positive for the illness, Canada’s first apparent case of coronavirus spread in the community.
Morneau said Canada is already seeing impacts on commodity prices, including oil and metals; on the tourism industry, including air transportation, retail, hotels and restaurants; and is feeling the hit to global supply chains, especially in Asia.
Bank of Canada governor Stephen Poloz said Thursday the Canadian economy’s resilience could be “seriously tested” by a coronavirus outbreak, depending on its severity and duration.
“There is a real risk that business and consumer confidence will erode further, creating a more persistent slowdown, especially given recent declines in stock markets,” he said.
The Canadian dollar fell to 74.51 US after Poloz’s remarks.
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