Their use will be a function of the outlook for output and inflation and of the relative effectiveness of the instruments in achieving the inflation target. 4  6  The G-20 policy rate has fallen to 2.14 per cent from 4.27 per cent in August 2008. BIS Review 41/2009  Conclusion A deep and synchronized global recession is currently under way.
It is being fed by a crisis of confidence. Reversing this will take concerted short-term macro measures, long-term micro reforms, and time. Stabilization of the global financial system is a pre-condition for economic recovery. In this regard, implementation of recently announced plans to address toxic assets in banking systems outside Canada will be critical.