Indeed, productivity has increased more quickly than wages over the past year, roughly coinciding with the weaker inflation that we have seen. However, Bank staff have yet to find rigorous empirical evidence to show that these factors add to our understanding of Canadian inflation beyond what the basic drivers tell us.
Examiners will look to see whether these reports generally address monitoring and testing activities, actual or potential material compliance deficiencies or breaches, and new or changing compliance requirements. They will also assess whether reports are designed to ensure that information on compliance is communicated to the appropriate levels within the organization.