For this reason, we must keep our unconventional policy tools ready to be deployed again should shortterm interest rates return to their effective lower bound. 1 5/7  BIS central bankers' speeches  1 Before the Great Recession, the FOMC occasionally provided forward rate guidance, but that guidance was  typically confined to a relatively short horizon.
The assessment of financial stability is becoming more rigorous and now follows a more structured analytical process, informed by models, better data and richer dialogue. This leads to more informed judgments around the risks to the financial system. In this issue of the FSR, we have introduced an enhanced framework that explicitly identifies the underlying vulnerabilities in Canada.