It accrued gradually over time as 2 per cent came to be perceived as a stable and achievable objective. Changing the target could cause it to become regarded as temporary in nature. A lesscredible target would limit the flexibility and effectiveness of monetary policy as a stabilization tool. Our research will undertake a careful analysis of the costs and benefits of adjusting the target.
5  See E. Santor and L. Suchanek, “Unconventional Monetary Policies: Evolving Practices, Their Effects and Potential Costs,” Bank of Canada Review (Spring 2013): 1–14. 6  We define the neutral rate as the policy rate that will prevail after the effects of all cyclical shocks have dissipated.