This legitimate need should, however, not be confused with a need for more comprehensive and intensive financial regulation. The dislocation in certain financial markets has certainly been painful and some of the consequences far-reaching.
The recent sizable depreciation of the Canadian dollar will also provide an important offset to the effects of weaker global demand and lower commodity prices. With excess supply projected to build throughout 2009, and with lower assumed energy prices, inflationary pressures will ease significantly relative to the projection in the July Update.