But the effects of higher rates will take time to spread through the economy. Fourth, there are no easy outs to restoring price stability. We need the economy to slow down to rebalance demand and supply and relieve price pressures. We expect growth will stall in the next few quarters-in other words, growth will be close to zero.
But once we get through this slowdown, growth will pick up, our economy will grow solidly, and the benefits of low and predictable inflation will be restored. Finally, we are trying to balance the risks of under- and over-tightening. If we don't do enough, Canadians will continue to endure the hardship of high inflation.