Since 1995, the target for inflation has been the 2 per cent midpoint of a 1 to 3 per cent inflationcontrol range. To keep inflation at 2 per cent, the Bank tries to keep a balance between the overall demand for and supply of goods and services in the Canadian economy.
Housing investment consequently increased, pushing up home prices further, which in turn encouraged homeowners both to take out loans using their houses as collateral, and to boost their spending.