According to Jinshi, the Bank of Canada warned that stronger-than-expected government spending could hinder its efforts to reduce inflation to 2%. S&P downgraded British Columbia's rating in part because of the province's capital expenditure plans and the large deficit it expects to run. Derek Holt, an economist at the Bank of Nova Scotia, warned that the pace of government spending could delay Canada's interest rate cuts. Canadian Finance Minister Freeland will unveil her budget next week, and she has revealed a spending plan of about C$25 billion. Holt said that based on the spending plans of Canada's four largest provinces alone, government spending will be about twice what the Bank of Canada had previously predicted.
