Our decision So, with all that as background, let me conclude by talking about the Bank’s decision yesterday. My colleagues and I began our discussions by recognizing that the data indicate the Canadian economy is operating close to full potential, the unemployment rate is near historic lows and inflation—our primary responsibility—is right on target.
The economy has clearly gotten past its earlier soft patch, the labour market has been strong and housing markets have begun to rebound. Although household debt levels remain high, mortgage underwriting rules are helping to contain financial vulnerabilities. This solid starting point means the economy has a welcome degree of resilience to possible negative economic developments.