If demand responds quickly to higher rates and inflationary pressures moderate, it may be appropriate to pause our tightening once we get closer to the neutral rate and take stock. On the other hand, we may need to take rates modestly above neutral for a period to bring demand and supply back into balance and inflation back to target.
We will of course be updating our views on the outlook for the economy and inflation as new data come in, and we will continue to share our assessments so Canadians can make informed decisions. Let me conclude with a brief word on quantitative tightening.