And, like many businesses and households, central banks have established techniques to reduce, where possible, the level of uncertainty they experience. The Bank has devoted considerable effort to reducing uncertainty by being clear about the objectives of monetary policy and the framework for achieving those objectives.
The inflation-control agreement with the Canadian federal government has been in place for the past quarter of a century. It provides a clear objective for monetary policy and operational independence for the Bank2. We also invest continuously in state-of-the-art forecasting models.