In the late 1980s the Bank of New Zealand had to be recapitalised twice by its government and private sector shareholders. More recently, between May 2006 and the end of 2012, we witnessed the collapse of finance companies. As the GFC unfolded the New Zealand government introduced a guarantee scheme that covered up to $ billion in deposits and investor funds.
Higher interest rates across the yield curve and a stronger Canadian dollar are expected to bring aggregate demand and supply in Canada back into balance in 2009. Inflation is projected to be slightly higher and more persistent than in the April Report.