This is where AMCON is very critical. A major challenge remains how to strike an appropriate balance between monetary, fiscal and other policies. There is s a limit to what monetary policy can do to deliver economic growth. Other complementary policies must be in place. Banking sector reforms is a necessary but not a sufficient condition for economic growth and development.
To counter that uncertainty and bolster consumer and business confidence, the Bank of Canada moved aggressively to provide monetary stimulus. Between last September and January 2002, we lowered interest rates by 200 basis points, bringing the total reduction since January 2001 to 375 basis points.