With a complete recovery still a long way off, monetary policy will need to provide stimulus for a considerable period. We have committed to keeping our policy interest rate at the effective lower bound until economic slack is absorbed so that our inflation target is sustainably achieved. And we have backed up this commitment with our program of large-scale government bond purchases.
A complete recovery—a shared recovery—is in everyone’s interest. A shared recovery is self-reinforcing. It draws more workers into the labour force. It leads to more investment. It generates more potential growth. And it creates space for the economy to expand faster without building inflationary pressure. I began this speech by highlighting the health of Canada’s labour market before the pandemic.