Over the next few weeks, the Bank will update its outlook for growth and inflation in Canada to reflect these factors and other developments, such as recent federal and provincial budgets. As always, this analysis will inform our monetary policy decisions. The Bank will take whatever action is appropriate to achieve the 2 per cent CPI inflation target over the medium term.
Another way to boost future standards of living is to increase saving.1 We need the additional saving in the decades ahead if we are to finance the construction of a capital stock that will produce the additional real resources needed to redeem the retirement claims of the baby boomers without having to severely raise claims on tomorrow's workers.