Since crude oil prices have recently been fluctuating substantially, the 2 percent inflation rate, depending on developments in crude oil prices, may be achieved somewhat sooner or later than envisaged. That said, however, let me reiterate that in our view, what matters is the underlying trend in inflation.
The recent turbulence in global financial markets has occurred at a time of robust global economic expansion and strong commodity prices. In the context of ongoing global developments, the Bank has identified several important issues and increased associated downside risks that currently face the Canadian economy. The marked volatility and sharp appreciation of the Canadian dollar warrant particular attention.