But we must be careful not to let our hopes run ahead of reality and take risks with inflation. A flare-up in inflation and the higher interest rates that would go with it would discourage investments, especially those in high-tech equipment and software, that enhance productivity and are so crucial to improved economic performance in the future.
The outlook for the Canadian economy is very promising. The best contribution the Bank can make to realizing this economic potential is to preserve the present environment of low and stable inflation. For this is what fosters sustained solid economic growth and improved standards of living over time. I can assure you that the Bank of Canada remains fully committed to the task.