We are focused on these indicators, and the evolution of core inflation, to ensure that consumer price index (CPI) inflation continues to progress toward the target. If monetary policy is not restrictive enough to get us all the way back to the 2% target, we are prepared to raise the policy rate further to get there.
However, it is clear that the Canadian economy is now nearer its level of potential than we expected it to be just a few months ago. The key issue facing both the U.S. and Canadian economies is business investment—when it will resume and how strong that pickup will be.