We must therefore keep a constant and watchful eye on the remaining differences within the euro area. And we have to be aware of the structural and behavioural changes in the financial systems. Further, one has to ensure that the signals set by monetary policy makers are “properly” understood by the market players.
Second, turbulence in global financial markets will continue to affect the cost and availability of credit. Third, business and consumer sentiment in Canada is expected to soften somewhat. Nevertheless, domestic demand is projected to remain strong, supported by firm commodity prices, high employment levels, and the effect of cumulative easing in monetary policy.