In these circumstances, the commitment provided by inflation-control targets will be far more useful in attracting and holding investors to a relatively small, open economy like Canada’s than to the United States. However, I would argue that the transparency and accountability of monetary policy and the resulting discipline in central bank decision-making that the targets encourage would be good for any country.
Bank loans to the private sector continue to rise, growing year-on-year by 5.1 per cent in July 2020, from 4.1 per cent in May 2020, the highest pace recorded since May 2019. Annual growth in bank loans was supported by both households and corporate borrowings. 48. The capital and liquidity positions in the banking sector remain strong, well above the regulatory limits.