In April of that year, the Bank introduced quantitative and qualitative monetary easing (QQE) to achieve the target at the earliest possible time, with a time horizon of about two years (Charts 17 and 18). Let me now explain the policy framework of QQE.
The prolonged housing slump has affected Canadian exports of lumber and building materials. In addition, the fall in U.S. motor vehicle sales – by 35 per cent at annual rates in the second quarter for vehicles assembled in North America – has adversely affected our auto sector.