It was made clear to them that short-term interest rates could fall below zero. Mindful of this, investors adjusted their interest rate expectations downwards; long-term interest rates have fallen. This has strengthened the desired effect on investment and consumption. The low interest rates are now being severely criticised, particularly in Germany.
It allows the Bank to pursue its own “made-in-Canada” monetary policy that is directed at achieving 2 per cent inflation in Canada and stabilizing our economy.