I believe that the recent extension of the inflation-control targets and the increasing credibility of those targets give monetary policy more scope to test the limits of our economic potential than at any time since the 1960s. Now that I have discussed the rationale behind the Bank of Canada’s medium-term strategy, let me explain our recent actions to raise the Bank Rate.
We are optimistic that the rural banking industry will sustain its positive performance this year and remain in the forefront of reforms as catalysts of a broad-based development in the countryside. For our part at the regulatory front, the BSP remains committed to the continuous implementation of our reform program to sustain financial stability and growth.