Both imply increased uncertainty for economic agents, and both have negative implications for economic performance. That is why the Bank treats the risk of inflation moving above the top or below the bottom of the range with equal concern.
Concluding remarks It is too early to be able to draw very strong conclusions about the impact of inflation targets on actual economic performance in Canada. We really do require a longer period of time for targets to demonstrate their ability to deal successfully with the peak of an economic upturn without the trend of inflation moving persistently outside the target range.