We have eased monetary policy by 350 basis points since December 2007, including 250 basis points since the start of October. In doing so, we cut rates deeper and sooner than most other major central banks. With the strains in our financial system considerably less than elsewhere, monetary conditions have eased significantly in Canada since the start of the crisis.
In fact, we are entering this recession with negative real interest rates – an unprecedented situation. In time, this will have a powerful impact on economic activity and inflation.