Bank of Canada Governor Mark Carney spoke to the Canadian Club of Canada in Montreal on September 25th and advised that Canada's financial system is in a good position to "weather the financial storm because it is prudent and soundly capitalized".
In his speech he noted that the slowdown in the U.S. markets and the insecurity in the market have been international factors that have affected the Canadian economy. A continuation of volatile commodity prices can be expected in the near future, although to date it has been a benefit to the Canadian economy.
Governor Carney also noted that Canadian banking and financial institutions are in much better shape than many other international countries and credit growth remains strong in this country. He also stressed that while international events might have an influence on the Canadian economy, the Bank of Canada would do everything in its power to monitor developments with due care and set monetary policy to achieve a 2 percent inflation target.
At the Knowledge Bureau, we are interested in hearing your opinion on the current market crisis. To what degree does the recent stock market crisis impact retirement and investment strategies of Canadians?
Your comments would be appreciated.