IMF Staff Country Reports

Canada: 2009 Article IV Consultation: Staff Report; Staff Statement; and Public Information Notice on the Executive Board Discussion

Publication Date:

May 22, 2009

Electronic Access:

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Summary:

The staff report on Canada’s 2009 Article IV Consultation examines economic developments and policies. Canadian banks have weathered the crisis better than major-country peers, but the credit cycle will be challenging, particularly given high household debt. Financial instability is a tail risk, but heightened vigilance is warranted. The Bank of Canada has appropriately loosened monetary policy, bringing the policy rate target to a record-low ½ percent. Macroeconomic policies have adopted an expansionary tilt, and authorities have taken steps to safeguard financial stability.

Series:

Country Report No. 2009/162

Subject:

Banking Commodity prices Credit Deflation Deposit insurance Financial sector policy and analysis Financial sector stability Inflation Money Prices