I’ll review the impact of the policy on inflation, why it works so well, and the unique and innovative process we follow to ensure that it remains effective. Finally, I’ll conclude with a discussion of important economic developments affecting economies worldwide.
Strengthening the framework to manage the potential risks these developments pose to the Canadian economy is the key objective of our research over the next four years. The search for an anchor Monetary policy needs a nominal anchor or a fixed point of reference to help tie down the expectations people have about inflation.