The impact of raising our policy rate will be higher interest rates for Canadian households and businesses, including many mortgage and prime lending rates, but also rates for savings products. The economy is now in a place where moving to a more normal setting for interest rates is appropriate. The economy can handle it.
We know this will be a significant adjustment, and we fully intend to tighten policy in a deliberate and careful way, being mindful of the impacts and monitoring the effects closely. The Bank is committed to returning inflation to the 2% target and keeping inflation expectations well anchored. Quantitative tightening I’d like to turn now to the second part of my remarks today.