In the very near future, in-depth regulatory steps to improve bank transparency, as well as strengthen the effectiveness of liquidity risk management and  6  BIS Review 26/2009  derivative products will complement these regulations farther.
The Canadian economy has been operating near its capacity for over a year now, unemployment is at its lowest in decades, and inflation is on target. Historically, this is the point in the business cycle where inflation pressures can start to build, so it is natural that we are looking to move interest rates to a neutral level.