Bank of Canada - Annual Report 2007

For Canada, 2007 was marked by sharply increased volatility in financial and foreign-exchange markets, and a widening of credit spreads.

In response to these conditions, the Bank of Canada used the standard mechanisms at its disposal to keep money markets liquid and maintain the overnight interest rate at the policy target level.

In spite of the global turmoil, the Canadian economy continued to expand, and inflation stayed close to the central bank's 2% target.

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