I also want to talk about the risks and uncertainties that we are facing as we work to get inflation back to target. Canadians know inflation is high. They see it at the grocery store, when they pay their rent and when they go to a restaurant or on a trip. And they know that we’ve increased interest rates.
They see that in higher costs for borrowing—in mortgage rates, lines of credit and business loans. But it is less obvious how higher interest rates are working to bring inflation down. Since March, we’ve raised the policy rate by 4¼ percentage points. In recent months, inflation has levelled off and has begun to ease.