This has occurred because of concerns over the scale of the losses being incurred by the banking sector internationally and the potential for knock-on effects in terms of a lower availability of funds for borrowers and a higher cost of credit. Many surveys of banks’ current credit standards indicate that they have been tightened because of the financial market turbulence.
We appreciate the opportunity to meet with this Committee twice a year, following the release of our Monetary Policy Reports. These meetings help us keep Senators and all Canadians informed about the Bank's views on the economy, and about the objective of monetary policy and the actions we take to achieve it.