Even with some back-up in yields in recent weeks, yields on 30-year Government of Canada bonds remain well below 5 per cent. The Canadian stock market has been buoyant, and risk spreads on corporate debt are near historical lows. Household credit and money growth have been strong, and cross-border investment flows have accelerated.
2  The Bank’s view of recent economic and financial developments, determined by the Policy Board at the Monetary Policy Meeting held on May 19 and 20, 2003 as the basis for monetary policy decisions. BIS Review 23/2003  1  of distribution channels will continue to exert downward pressure on prices.