With growing evidence that economic activity was expanding smartly, the Bank of Canada began reminding Canadians that, as slack in the economy is taken up, there would be a need to move to less-stimulative monetary conditions. We took a step in that direction last week when we raised our Bank Rate by ¼ of a percentage point to 3¾ per cent.
With regard to the SSM, this means that, for practical reasons, direct supervision of all institutions in the euro area was neither feasible nor wanted right from the outset.