This is also why Canadian authorities, including the Bank, will need to remain as vigilant as they have been in the past to the possibility of financial imbalances developing. To maintain price stability and support the adjustments to aging across the economy over time, the Bank itself will also have to adjust.
Interest rates on non-resident deposit schemes, which have been recording sizeable inflows, were reduced by 50 basis points for rupee deposits and by 25 basis points for foreign currency deposits. Banks were also restrained from granting fresh loans in excess of Rs.20 lakhs against non-resident deposits.