Indeed, in the Bank of Canada's latest Monetary Policy Report, published on Thursday, we projected that the cost of credit for Canadian firms and households relative to our policy interest rate will be about 25 basis points higher over the projection horizon than it was prior to the summer.
On a different matter, you might recall that at our previous hearing we had a discussion about quantitative easing (QE). Shortly after that I gave a public speech on the issue. Given the Committee’s previous interest in the topic I thought it would be useful to summarise the main points for you. The first is that negative interest rates in Australia are extraordinary unlikely.