Monetary Policy Report

During the past six months, global economic uncertainties have intensified, largely as a result of developments in emerging-market economies.

Canada’s inflation-control targets establish a specific medium-term objective for monetary policy.

In the last half-year, the economic expansion in Canada has become well established, supported by low inflation, highly stimulative monetary conditions, and a strong U.S. economy.

Since the last Report, the Canadian economy has advanced broadly in line with expectations.

This Report outlines recent developments in the Canadian economy that affect the rate of inflation and provides an account of the measures taken by the Bank of Canada to control inflation.

This Report presents the Bank of Canada’s assessment of the trend of inflation in Canada and explains the monetary policy actions deemed necessary to keep inflation within the Bank’s inflation-control target range.

This is the second in a series of semi-annual reports designed to increase the transparency and understanding of Canadian monetary policy.

This is the first in a series of semi-annual reports by the Bank of Canada on Canadian monetary policy.