The federal government’s irresponsible fiscal discipline may lead to Canada losing its AAA credit rating, especially when comparing its economic policies to those of other top-rated countries.
The Royal Bank of Canada report released on Thursday, serves as a warning ahead of Finance Minister Chrystia Freeland’s new fiscal budget announcement on April 16.
The report is urging the Trudeau government to show discipline in its upcoming budget and not to take its “status as a top-rated sovereign for granted.”
RBC Economist Rachel Battaglia cautions that Canada stands to lose its AAA rating if the government continues to stray from its fiscal budget anchors, which has negatively impacted its credibility on the global stage, thus making borrowing more expensive.
“Any rise in the federal government’s funding costs will trickle down to businesses and households,”…
