International evidence suggests that in United States, amendments were made in banking laws which were seen as a way to enable the US banks to remain globally competitive. Adopting this new law resulted in ending 60 years of segregation of activities of banking and securities markets.
But we refrained from raising interest rates because of geopolitical and financial uncertainties, high yield spreads and restricted access to funding for riskier corporate borrowers, as well as the expectation of weaker foreign demand for Canadian goods. Since then, inflation has been above the 2 per cent target midpoint.