This investment drives innovation, generates new ideas, stimulates competition and supports employment. So one of the important ingredients to the recovery in business investment in Australia is ensuring a supportive environment for innovative small and mediumsized businesses. Monetary policy I would now like to return to the outlook for monetary policy in Australia.
At the Bank of Canada, we’ve been thinking through what a shock from China would mean for our economy. 23 Canada would be affected mainly through lower commodity prices and slower trade. Direct financial spillovers would likely be relatively small because our banks have little direct exposure to China.