As indicated during our capital plan reviews in both 2011 and 2012, the Federal Reserve may object to a capital plan because of significant deficiencies in a firm’s capital planning process, as well as because one or more relevant capital ratios would fall below required levels under the assumptions of stress and planned capital distributions.
The Update reviews economic and financial trends in the context of Canada’s inflation-control strategy. Three developments have led us to modify our outlook for economic growth and inflation in Canada, since our October Monetary Policy Report.