This principle recognizes that, over the medium term, monetary policy should work to keep inflation low, stable, and predictable. Let me explain how we do this. Since 1991, following a joint agreement with the federal government, the Bank of Canada has operated with a system of inflation-control targets.
I don't plan to spend a lot of time explaining our system to this audience, because the United Kingdom adopted a system very similar to ours a couple of years after we did. We aim to keep consumer price inflation at the 2 per cent midpoint of a 1 to 3 per cent range.