Senior Deputy Governor Wilkins and I are happy to be with you to answer your questions about today’s interest rate announcement and our Monetary Policy Report (MPR). Before taking your questions, let me briefly offer a few insights into Governing Council’s deliberations. Inflation is on target and the economy is operating close to potential.
That statement alone underscores the considerable progress seen in the economy over the past 12 months. That said, interest rates remain very low relative to historical experience. This is because the economy is not yet able to remain at full capacity on its own.