The powerful private capital inflow boosted money supply. The M2 aggregate rose by 39% in 2005, and by 49% in 2006. In order to restrict money supply growth, the Central Bank raised interest rates on commercial banks’ deposits with the Central Bank several times in 2006 and 2007. Currently, the interest rate on oneweek deposits is 3%.
Starting today, these safer, cheaper, greener, bank notes will be rolled out across Canada; and over time, they will make it into everyone’s hands. Given the striking imagery on the $ bank note, it is entirely appropriate that we are here on National Railway Day. This day marks the anniversary of the hammering of the last spike into the railbed in Craigellachie, British Columbia.