  Reflecting all of these factors, the Bank decided yesterday to maintain the target for the overnight rate at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in an environment of material excess supply in Canada. Any further reduction in monetary policy stimulus would need to be carefully considered.
It is precisely in the lower wage groups that it would be important to structure wage substitutes in a more incentive-friendly way. From a current perspective it remains an open question whether the establishment of European monetary union will ultimately also lead to a reduction in labour market rigidities.