BIS Review 51/2003  9  In this context, if it looked as though the appreciation of the Canadian dollar would more than offset the effects of stronger world demand, or that world demand was weakening, we would act to stimulate domestic demand with the intent of returning inflation to the 2 per cent target over the next 18 to 24 months.
Such action would take the form of lowering interest rates. As I said in my recent testimony before the Senate Banking, Trade and Commerce Committee, the Bank continues to assess the implications of all past developments - domestic and external - for output and inflation in Canada.