If the trend of inflation moves away from the target in either direction, the Bank will take action so that inflation returns to the target within 18 to 24 months. Canada's inflation-targeting framework works in a symmetrical way, minimizing the chances of both a sustained upward drift in inflation and the threat of deflation.
Indeed, through most of the past decade, we have managed to keep inflation around the 2 per cent target midpoint. And so, Canadians' expectations for inflation have become firmly anchored around 2 per cent.