Our examination of the costs and benefits of these tools suggests we should keep our expectations modest in terms of the effectiveness of any one tool particularly as instruments to help control the flow of credit.
The Governing Council believes it’s important to continue studying the matter, not just as it pertains to government bonds, but also to other asset classes. Given the new regulatory architecture, we may not know just how resilient market liquidity is until there’s a true stress event. Let me now turn to vulnerabilities being created by persistently very low interest rates in Canada.