Canada: 2009 Article IV Consultation: Staff Report; Staff Statement; and Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, May 22, 2009
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- Canada: 2009 Article IV Consultation: Staff Report; Staff Statement; and Public Information Notice on the Executive Board Discussion
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Bibliographic details
- Published: May 22, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451807080.002
Key findings and economic assessment
- Canadian banks have weathered the crisis better than major-country peers.
- The credit cycle will be challenging, particularly given high household debt.
- Financial instability is characterized as a tail risk, but heightened vigilance is warranted.
- The Bank of Canada has loosened monetary policy, bringing the policy rate target to a record-low ½ percent.
- Macroeconomic policies have adopted an expansionary tilt.
- Authorities have taken steps to safeguard financial stability.
Financial sector and stability
- Canadian banks performed relatively well versus major-country peers during the crisis.
- High household debt increases vulnerability through the credit cycle.
- Financial instability remains a tail risk; recommended stance is heightened vigilance and continued safeguarding measures.
Monetary and macroeconomic policy stance
- Monetary policy: policy rate target set at a record-low ½ percent by the Bank of Canada.
- Macroeconomic policy: an expansionary tilt has been adopted to support the economy.
Subjects and keywords highlighted in the report
- Subjects: Banking, Commodity prices, Credit, Deflation, Deposit insurance, Financial sector policy and analysis, Financial sector stability, Inflation, Money, Prices.
- Keywords: business outlook survey, Canadian dollar, capital injection, Caribbean, Commodity prices, Core CPI inflation, CR, Credit, Deflation, Financial sector stability, Global, headline inflation, Inflation, inflation outlook, ISCR, Medium-term inflation expectation, monetary policy report, statistics Canada, stimulus package, target rate.