Bank of Canada Governor Urges Corporate Canada to Spend

“Bank of Canada governor Mark Carney has a message for Corporate Canada: Start spending your cash or give it to shareholders to do it for you,” the National Post’s John Shmuel wrote this week. The article continued, “‘This is dead money,’ Mr. Carney said during a news conference Wednesday, following a historic speech to members of the Canadian Auto Workers union. It was a sign that the head of Canada’s central bank is frustrated with the record piles of unused cash Canadian companies hold today. ‘If companies can’t figure out what to do with it, then they should give it to shareholders and they’ll figure it out,’ he said. The comments were some of the strongest Mr. Carney has made regarding the almost $600-billion in unused cash being held by non-financial companies in Canada. Cash hoarding has grown steadily since the financial crisis, as firms feel the need to retain large cash reserves in the face of uncertainty in the global economy.” Read the full article here.

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