The BoC Monetary Policy Report includes an evaluation of the impact of the European debt crisis to the Canadian economy: "The sovereign debt crisis in Europe is expected to affect the global and Canadian economies through both trade and financial channels. Accelerated fiscal consolidation and tighter credit conditions in the euro area will reduce domestic demand in that region, thus decreasing European demand for imported goods and services."
While mentioning its influence on global recovery: "Since much of this debt was held by banks across the euro area, concerns were also expressed about the resilience of certain banks. These concerns and the resulting financial market tensions have increased uncertainty about the global economic recovery."
While mentioning its influence on global recovery: "Since much of this debt was held by banks across the euro area, concerns were also expressed about the resilience of certain banks. These concerns and the resulting financial market tensions have increased uncertainty about the global economic recovery."