From the Bank's point of view, the basic arrangement of aiming inflation at the 2 per cent midpoint of a 1 to 3 per cent target range has served Canadians well, along with the use of the total CPI as the target, and a measure of core inflation for operational purposes. The Bank will also continue to recognize the importance of communications and transparency.
Inflation targeting does a good job of  BIS Review 85/2005  3  anchoring expectations, but it works better when a central bank communicates well. I expect that these basic elements of our framework will remain in place. This is not to say that we haven't examined these elements. Indeed, we have asked ourselves if 2 per cent is the right target.