Mark Carney says Canada’s publicly traded companies aren’t taking advantage of ultra-low interest rates, reports The Globe and Mail.
Carney recently spoke at a CAW convention, saying, “We all need to recognize that durable, high-paying manufacturing jobs will be located in companies that invest in training their workers.” They need to grow their bottom lines and ensure Canada remains a competitive player in the global market.
He said companies are sitting on more than $500 billion in unused cash.
Following his speech, he told Globe reporters the “dead money should be returned to shareholders if managers are unwilling to find more productive uses for it. Their job is to put money to work.”
And while execs may be wary of the European crisis and the faltering U.S. economy, he claims they need to trust the BoC and their efforts. They should instead focus on doing their fair share to drive economic growth.
In his view, only international efforts to strengthen global financial stability—including building resilient financial institutions, creating continuously-open markets, and strengthening the regulation of shadow banking—will ensure businesses get the capital they need to continuously invest and hire.
These measures will also help protect Canada from sudden shocks from abroad. “Canada learned during the last crisis that having our own house in order is not enough. We need others to raise their game, which is why the FSA is increasingly focused on timely and consistent implementation of agreed reforms.”
Read: The Mark Carney bubble