As we go through the normalization process, this represents the natural reaction of financial markets to economic uncertainty and a return to a normal trading environment – not an erosion of central bank credibility. The Bank of Canada will continue to pursue and fulfill our inflation-targeting mandate.
We will continue to follow the policies necessary to ensure a timely return of inflation to target while being mindful of financial stability considerations. This process takes place in an uncertain world where shocks happen daily, behaviour shifts repeatedly, and our analytical tools and models can offer only rules of thumb.