Noticing the steep increase in bank credit to the commercial real estate sector in conjunction with that in the prices of real estate, risk weights for banks’ exposure to commercial real estate were increased from 100 per cent to 125 per cent in July 2005, and further to 150 percent in May 2006.
The Bank will look through the transitory effects on inflation of changes to provincial indirect taxes.   The risks around this projection remain elevated and are judged to be roughly balanced over the projection horizon. Globally, on the upside, the boost in confidence as advanced countries restore fiscal sustainability could generate greater-than-expected offsets to the fiscal consolidation.