These indicators include unanticipated movements in current inflation, changes in expectations of future inflation, the growth of money and credit, and information gathered from the Bank’s regular contacts with businesses across Canada.
However, RNBCs will have to quickly gear up to a change in their business model. Though consolidation in the public sector banking segment, which accounts for about 75 per cent of the assets of the banking system, is still a work in progress, there are enabling legal provisions for the purpose in the respective statutes of the public sector banks.