Bank of Canada Lending

WHEREAS on April 21, 2009 the Bank of Canada cut its overnight interest rate to an historic low rate of 0.25 in an aggressive bid to spur a slumping economy; AND WHEREAS the Bank of Canada downgraded its forecast for economic growth in 2009 from a slip of 1.2 to a decline of 3.0 and lowered its growth forecast for 2010 from 3.8 to 2.5; AND WHEREAS money markets are tight, banks have liquidity problems and long-term loans remain relatively expensive and difficult to obtain: THEREFORE BE IT RESOLVED that the Union of BC Municipalities suggest to the Bank of Canada that it lend directly to municipalities for infrastructure projects and that these funds be spent in the year received.