The chief economist of bank and mortgage lender CIBC expects Ottawa to do more to boost the economy. Avery Shenfeld says that “things aren’t as bad as you’re hearing on the street” but that Canada’s federal budget will deliver a “larger fiscal boost than was talked about during the [election] campaign.”

While he highlights near-term concern for the economy, Mr Shenfeld does not see it “turning Japanese”. However, he points out that monetary policy in Canada has few options given “an indebted household sector and an aging housing boom.”

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