The Bank’s interest rate policy is targeted primarily at keeping future CPI inflation between 1-and-3 percent on average over the medium term, although it must also have regard to the soundness and efficiency of the financial system. The Bank’s other relevant instrument is macro-prudential policy.
*  *  *  Today, we released the July update to our Monetary Policy Report, which discusses current economic and financial trends in the context of Canada's inflation-control strategy. Economic growth and inflation in Canada in the first half of this year have been stronger than was expected in the April Monetary Policy Report.