And firms have been investing in machinery and equipment to increase their productivity. Moreover, our latest Business Outlook Survey suggests that companies continue to be positive about the economic outlook, and that investment and hiring intentions remain firm across all regions and most sectors. But what about macroeconomic policies—how can they contribute to the adjustment process?
Monetary policy, which is the responsibility of the Bank of Canada, is national in nature and scope. This means that we need to look at what is happening across Canada, add it all up, and gear monetary policy to the needs of the entire country.