Outdated views about the Phillips curve, overly ambitious estimates of the natural rate of unemployment and a concern about letting the Canadian dollar appreciate much above $ 1, contributed to the problem. The Bank of Canada was not unusual in this regard, and its performance did not differ noticeably from that of most other central banks.
While the ultimate objective is for all banks to be fully aligned with our supervisory expectations, the thematic review is intended to be a learning exercise – not just for supervisors across Europe, but also for the banks. This is why we have made a point of sharing good practices we have observed – so that banks can draw inspiration and push forward.