At least twice a year, Senior Deputy Governor Carolyn Wilkins and I make public appearances before committees of the House of Commons and of the Senate, which are webcast. Parliamentarians grill us on our track record on inflation and the Bank’s other functions. Furthermore, the inflation-target agreement is subjected to a thorough review every five years.
During this time, anyone can offer new thinking on our framework. This consultation process ensures widespread buy-in. But perhaps the most important way to build trust is through results. Because we kept successfully reaching our inflation goals, by the late 1990s, inflation expectations had become solidly anchored on our 2 per cent target.