But let me be clear: Whatever issues there may be, our policy framework of inflation targeting, supported by a floating exchange rate, remains the most effective approach yet devised for conducting – and explaining – monetary policy in a country like Canada. No central bank that has adopted inflation targeting has later abandoned it.
On the financial side, we are glad to see the remarkable initial results of the Capital Adequacy Frameworks review, designed, and launched under the G20 Italian Presidency. We should swiftly proceed with the proposals to remove the Statutory Lending Limit from the Articles of Agreement, lower the equity-to-loans ratio, and launch a pilot on Hybrid Capital with private investors.