First, the starting point matters to a monetary policy decision. If inflation is on target and is projected to be on target in two years, then various risks can be interpreted and managed in an even-handed manner. But our current situation serves as a counter example.
While we project that inflation will be sustainably at target around the middle of next year, we are well aware that the lingering aftermath of the crisis has left the Canadian economy with persistent excess capacity, and inflation has been in the lower half of our target range for some time.