The bust in 2008 of the last credit boom did not lead monetary policy to tolerate a higher-than-mandated rate of inflation. Instead, in the large advanced economies at least, the bursting of the bubble coincided with a contraction of private demand and a deep recession. The negative effect of the crisis on economic activity actually reduced inflationary pressures.
For its part, the Bank has a wide range of tools and policy options that it will continue to deploy as appropriate in order to ensure that Canadians can seize these opportunities in an environment of domestic macroeconomic and financial stability. BIS central bankers’ speeches  3