1 Mar

Canada due for "boring is beautiful" budget


Posted by: Kimberly Walker

By Jeffrey Hodgson  TORONTO (Reuters) – Global investors ravaged by rising sovereign risk will find welcome respite in Canada’s March 4 federal budget, with controlled leaks and relatively healthy finances making it a refreshingly low-key event for markets.

In stark contrast to the Greek budget tragedy unfolding in Europe, Canada is expected to forecast a deficit of less than 3 percent of gross domestic product, the lowest of any Group of Seven nation.

And Finance Minister Jim Flaherty and his officials have spent weeks diligently stealing their own thunder, pre-releasing major news like mortgage rule changes and stressing there will be no significant new spending or tax measures.

“It doesn’t make for a great exciting story. But, guess what? For investors, boring is beautiful. That’s the new beautiful,” said Stewart Hall, an economist with HSBC Securities.