Growing economies will have to cope with stimulus rollback: Bank of Canada

CASCAIS, Portugal (Reuters) – The world’s growing economies will have to find ways to cope with an end of central bank stimulus, the deputy governor of the Bank of Canada said on Monday.

The risks from the rolling back of stimulus include sharp snapbacks in assets, Timothy Lane told the Horasis conference of business leaders taking place in the Portuguese resort town of Cascais.

“We are now seeing a very synchronized expansion,” he said, adding that growth is still “very much dependent on stimulus”.

“Sooner or later we will face the challenge of changing that stimulus without causing disruption,” he said, referring to the quantitative easing still carried out by many central banks.

He said the world also faces uncertainty from the political reaction to technological change.

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