This commitment is unprecedented as central bank monetary policy, but stipulating the conditions beforehand has made it possible for market participants to act based on the commitment and that has contributed to boosting the transparency and effectiveness of monetary policy.
Canada has made the most explicit commitment of the major industrial countries and has backed its words with actions. The result has been significant and lasting, in the form of a 10- to-20-basis-point decline in implied yields on government bonds out to one year (see Chart 4).