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. That means keeping inflation low, stable, and predictable.
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. 8  BIS Review 36/2010  BIS Review 36/2010  9  10  BIS Review 36/2010  BIS Review 36/2010  11