Our latest policy decision That brings me to yesterday’s decision to hold our policy rate, the target for the overnight rate, at 1.25 per cent. This decision, as always, is grounded in our assessment of developments in the Canadian economy and what they mean for the outlook for inflation. In that regard, global and Canadian economic data have come in much as we expected.
That confirmation gives us greater confidence that inflation will remain sustainably near our 2 per cent target. Our decision yesterday also takes into account some important context. First, our policy rate remains appropriately below what we call the normal, or neutral, rate—the policy rate that would balance the economy in the longer run.