Shifts in interest rates or inflation could ‘totally change the picture’ on fiscal sustainability, says PBO

'Even though there is fiscal flexibility, it doesn't mean that governments have to use it,' says Parliamentary Budget Officer Yves Giroux.

Last month, the Parliamentary Budget Office released its 2023 fiscal sustainability report. Parliamentary Budget Officer Yves Giroux told The Hill Times that some of the key assumptions in the report are that inflation will return to about 2 per cent, and interest rates will return to a neutral monetary policy over the long term.The Hill Times photograph by Sam Garcia

News

BY IAN CAMPBELL

August 28, 2023

A report last month from the Parliamentary Budget Office found that fiscal policy in Canada is sustainable over the long term—but that conclusion is based on a series of “very important assumptions” that, if false, would “totally change the picture,” cautions Yves ...

To keep reading, subscribe and become a political insider.

Only $7.76 a week for an annual subscription.

Enjoy unlimited website access and the digital newspaper.

Cancel anytime.

Already a Subscriber?

Get Today’s Headlines Newsletter

Your quick scan of the news you need each weekday to be the smartest person in the room.

By entering your email address you consent to receive email from The Hill Times containing news, analysis, updates and offers. You may unsubscribe at any time. See our privacy policy