Inflation targets

• November 26, 2024

  Keeping inflation at 2%

  Speech summary Rhys R. Mendes Greater Charlottetown Area Chamber of Commerce Charlottetown, Prince Edward Island

  In his first public speech as a deputy governor, Rhys Mendes explains why higher interest rates were needed to get inflation back down to the 2% target and why we want it to stay there.

  Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Credibility, Expectations, Inflation and prices, Inflation targets, Interest rates, Monetary policy, Monetary policy communications, Price stability
• November 26, 2024

  Sticking the landing: Keeping inflation at 2%

  Remarks Rhys R. Mendes Greater Charlottetown Area Chamber of Commerce Charlottetown, Prince Edward Island

  Deputy Governor Rhys Mendes discusses how monetary policy worked to bring inflation back down to target and why the Bank wants inflation to stay close to 2%.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Credibility, Expectations, Inflation and prices, Inflation targets, Interest rates, Monetary policy, Monetary policy communications, Price stability

• How Do Households Respond to Expected Inflation? An Investigation of Transmission Mechanisms

  Staff Working Paper 2024-44 Janet Hua Jiang, Rupal Kamdar, Kelin Lu, Daniela Puzzello

  We conduct surveys to study how consumer spending responds to higher inflation expectations. Most respondents spend the same, sticking to fixed budget plans or not considering inflation for spending decisions. About 20% decrease spending because they feel poorer and cut spending to invest in inflation-proof assets. Very few increase spending.

  Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Inflation and prices, Inflation targets, Monetary policy, Monetary policy transmission JEL Code(s): D, D1, D15, D8, D84, E, E2, E5, E52, E7