Bank of Canada Financial System Review, Dec 2004

The Bank of Canada published its semi-annual Financial System Review on 9 December. The report says continued strong global economic growth has reduced financial vulnerabilities in Canada and elsewhere. Higher oil prices have, however, raised questions about the strength of global economic prospects going forward.

The global financial system appears well positioned to absorb increases in interest rates over time in several countries, including Canada.

On balance, conditions in the Canadian

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