Other things being equal, a persistently strong Canadian dollar would reduce real growth and delay the return of inflation to target. The Bank will assess the balance of risks to inflation in its upcoming MPR. Even though we are at the effective lower bound for our policy rate, the Bank retains considerable flexibility in the conduct of monetary policy.
Domestically, between 2010 and 2013, the Oireachtas and the Central Bank introduced several pieces of legislation, codes and regulations which much strengthened the requirements weighing in on commercial banks and the hand of the Central Bank in supervising them and enforcing against their breaches. These new requirements were additional to the prevailing European capital requirement directive.