[25] At the same time, to avoid that the effective lower bound constrains monetary policy too frequently – and thus to reduce the need for unconventional policy tools – it is essential that inflation is centred at its target over the medium term, so that the limitations imposed by a low equilibrium real rate are not further compounded by an inflation trend that is also too low.
Given how interconnected our financial system is, there is concern that a successful attack on one institution could have wide-ranging effects. The Bank has been working with major banks and Payments Canada to make sure our country’s key payment systems can recover quickly from a successful cyber attack.