Upside risks include a faster-than-expected recovery in consumer and business confidence, and further improvements in Canada's terms of trade. Downside risks are largely external, such as a risk of setbacks in the ongoing repair of the global financial system, and more persistent weakness in foreign private demand.
More specifically, the reflections should in my view consider an increased role for the ECB’s Governing Council in macroprudential policy, given its special role in and responsibility for both monetary and macroprudential policy in the euro area, as set out in the Treaties and in the SSM Regulation.