Because financial stability is so important for household and business confidence, the expansion of our economy will be influenced by how quickly global financial markets stabilize. Still, with accommodative monetary conditions and recent solid employment gains, spending by Canadian households and businesses, while slowing, should continue to contribute to an expanding economy.
And, based on the Bank’s current assessment of the world economic outlook and Canada’s improved competitiveness, our exports should continue to grow. The monetary policy response to the international turbulence Let me now turn to monetary policy. You will not be surprised to hear that throughout this period, the conduct of policy has been influenced by these exceptional international developments.