The Financial Post reports in its Friday, April 19, edition that the Bank of Canada has fewer reasons to continue to delay taking action compared with the United States Federal Reserve. The Post's guest columnist David Rosenberg writes that despite the spending in the federal budget, the Canadian economy is weaker and fiscal policy is less stimulative. Moreover, there is a lot of spare capacity being built up, especially in the labour market. In a recent statement, the Bank of Canada acknowledged that the Canadian economy had swung into "excess supply." It added that "a broad array of indicators suggest that labour market conditions continue to ease." However, the BOC is still behaving as if the economy is operating in an "excess demand" environment, which makes no sense at the moment. Mr. Rosenberg says it is time for the BOC to take action, even if the Fed takes time to do so. The Canadian dollar may continue to remain weak, but currency depreciation is needed to counteract the loss of domestic competitiveness. This issue was not addressed in Tuesday's budget. It is high time for the BOC to take its head out of the sand and move quickly to avert a possibly destabilizing recession, provided it is not too late.