If this pro-cyclical effect is significant then monetary policy adjustments to official interest rates may need to be more vigorous, potentially in both the upturn and the downturn, to achieve the same effect on bank cost of funds, and thereby bank lending rates.
13  For a more detailed discussion, see M. Carney, “Reforming the Global Financial System,” remarks delivered to the Rendez-vous avec l’Autorité des marchés financiers, Montréal, 2009. Available at http://www.bankofcanada.ca/en/speeches/. 14  As chair of the drafting committee, Rasminsky helped to reconcile views, mediating between the British and the Americans.