Uncertainty related to all of these factors has led to exceptional volatility in financial and currency markets globally. While there remain upside risks to inflation in Canada, all factors considered, the Bank judges that there has been a shift to the downside in the balance of risks around our October projection for inflation.
In light of this shift, we lowered the target for the overnight rate last week. Before our next interest rate decision in January, we will assess all economic and financial developments and the balance of risks, and do a full projection for the economy and inflation.