Ultra-low interest rates are a symptom of the conditions we face, conditions that we believe are improving over time.
But some of the forces leading to low interest rates will persist for a long time, so we need to prepare for lower for longer.
Individuals need to plan for retirement with different assumptions about longevity, interest rates and growth.
Businesses need to make sure their expectations about investment returns reflect the current and likely future reality and reconfigure their investment plans accordingly.
And policy-makers need to make sure they are working to increase the economy’s potential output and reduce uncertainty—whether economic, political or regulatory—that may be holding back investment.
SOURCE - THE BANK OF CANADA WEBSITE