You will remember that the Bank of Canada reduced the policy rate by 50 basis points in 2015, to near-historical lows. The second form of diversity—which I will focus on today—relates to the sources of economic growth. Generally speaking, while growth might bounce around from quarter to quarter, it is more likely to be sustainable over the medium term if its sources are broad-based.
For example, 2/8  BIS central bankers' speeches  growth in exports helps generate the income required to sustain growth in household spending without the need to borrow from abroad. Similarly, demand growth is more likely to be sustainable if matched by growth in capacity-enhancing business investment. There are also important sectoral and geographic aspects to sustainability.