But within this matrix, central banks have two limited but important roles to play: promoting price and financial stability. Price stability Low, stable and predictable inflation promotes growth, mitigates economic cycles and protects the purchasing power of money. In 1991 the Government and the Bank of Canada adopted an inflation-targeting regime, which was renewed again in 2011 for another five years.
As the containment measures are gradually lifted, these scenarios foresee a recovery in economic activity, although its speed and scale remain highly uncertain. Inflation has declined as a result of the sharp fall in oil prices and slightly lower HICP inflation excluding energy and food.