How quickly and how effectively they are taken will influence activity and inflation in Canada and, therefore, the stance of monetary policy. The Bank will need to be agile. The Bank will maintain its unwavering commitment to price stability.
The single, most direct contribution that monetary policy can make to sound economic performance is to provide Canadians with confidence that their money will retain its purchasing power. Price stability lowers uncertainty, minimizes the costs of inflation, reduces the cost of capital, and creates an environment in which households and firms can invest and plan for the future.