We also agreed that we must keep inflation expectations well anchored. If inflation expectations become unmoored, the costs of getting inflation back to target will be much higher. For both of these reasons, we signalled with unusual clarity that Canadians should expect a rising path for interest rates. What can businesses expect from us?
We will continue to act deliberately and communicate clearly so monetary policy is a source of confidence, not of uncertainty. And as businesses set prices and wages, firms and workers alike can be assured that the Bank of Canada will use its monetary tools to control inflation. Your business decisions have important implications for the performance of the Canadian economy.