His leadership in the areas of monetary policy, financial institutions, and Canada’s clearing and settlement systems has been invaluable. We will all miss his expertise, his enthusiasm, and his keen wit and intellect. The last time I testified before this committee was in the spring of 2002, because we were unable to arrange our regular meeting last fall.
First, money supply grew faster than desired with actual M1 and M2 higher than predicted and so did credit with its growth rate 10 percentage points higher than that forecasted in the beginning of 2004. Hike of required reserve ratio will help control money injection and loan growth, ensuring the stable performance of the financial market.