On the other hand, monetary policy has succeeded in avoiding 5  second-round effects from the recent shocks, as suggested by the fact that long-term inflation expectations have remained relatively stable. While this is a laudable outcome, it is also important to take into consideration that we cannot be satisfied yet, since long-term inflation expectations based on surveys remain at around 3.5 percent, i.e.
•  Commodity prices have remained at historically elevated levels, though temporary disruptions and persistent transportation bottlenecks have led to a record discount on Canadian heavy crude. •  In Canada, the slowdown in the second half of 2012 was more pronounced than the Bank had anticipated, owing to weaker business investment and exports.