If it looked as though these developments would have a significant effect on Canada and lead to upward pressures on prices here, our objective of keeping inflation within the target range might be jeopardized. In that case, the Bank of Canada would certainly respond.
Let me be as clear as I can on this - our current healthy economic expansion will continue only if we sustain a low and stable inflation environment. A more difficult scenario for Canadian monetary policy would be an actual outbreak of inflation in the United States next year.