The creation of the Asset Management Corporation will provide the first step towards resolution of the non performing loan problem in banks and eventually facilitate further consolidation. This process is on-going and we expect all banks to be totally weaned off CBN support by the end of Q3 2010.
The economy is now operating near its production capacity and continues to adjust to global developments. Our latest Monetary Policy Report, released on 21 October, presents the Bank’s base-case projection for the period to the end of 2006. It calls for aggregate demand for Canadian goods and services to expand, on average, at about the same rate as potential output.