Guided by the 2 per cent target for inflation, the Bank of Canada pushed its overnight interest rate essentially to the floor – that is, to the effective lower bound of 25 basis points. We also set out a framework for unconventional policies that could be used to provide further stimulus if needed.
This is even more important given that high global leverage would amplify any global downturn, especially if it became a recession. It is reassuring that should a storm arrive, the Canadian economy and financial system are in a good position to weather it. 18 Insurance Bureau of Canada, 2019 Facts of the Property and Casualty Insurance Industry in Canada.