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AVAILABLE EXPERT - Bank of Canada decision on interest rates

Tuesday, January 19, 2016

Queen's University economist Don Drummond is available to comment on the Bank of Canada's decision on interest rates, scheduled for January 20 at 10 AM. Professor Drummond is the Stauffer-Dunning Fellow in Global Public Policy and Adjunct Professor at the School of Policy Studies at Queen’s University.

"We can distinguish between what the Bank of Canada should do and what they might do," says Professor Drummond. "They shouldn't bother cutting their interest rate again.  If a rate of 0.5 per cent and the current weakness in the Canadian dollar aren't doing the trick, cutting another 0.25 won't make any difference. The extremely low interest rates are just leading to higher household debt."

"If the Government of Canada wishes to bolster economic growth, fiscal policy is a more logical choice. To a degree it will be doing this by following through on election promises, particularly through increased infrastructure spending. Rather than being pinning down by some artificial constraints on how they will let the deficit go - which will no doubt be violated - they should acknowledge the economic weakness and say they are deliberately counteracting it."

Professor Drummond is available for phone interviews for print and radio only.

To arrange an interview, please contact communications officer Chris Armes (613-533-6000 ext. 77513 or chris.armes@queensu.ca) or Anne Craig (613-533-2877 or anne.craig@queensu.ca) at Queen’s University News and Media Services Department in Kingston, Ont., Canada.

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Attention broadcasters: Queen’s has facilities to provide broadcast quality audio and video feeds. For television interviews, we can provide a live, real-time double ender from Kingston with HD-SDI. Please call for details.

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