In 1991, recognizing the importance of inflation to the economic and financial well-being of Canadians and the central role of monetary policy in controlling inflation in the longer run, the Bank began pursuing an explicit target for inflation. The results have been impressive. Since 1991, inflation in Canada, as measured by the consumer price index (CPI), has been remarkably stable.
I wish to emphasize that a well-developed and proper functioning financial market is critical to economies all over the world as it enhances effectiveness of monetary policy, cushions the economy against external vulnerabilities while mobilizing long term financing for public and private sector development.