News

Economic growth and inflation in Canada in the first half of this year have been stronger than was expected in the April Monetary Policy Report.

The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 4 1/2 per cent.

The principal mission of the Bank of Canada is the formulation and implementation of Canada's national monetary policy to promote the economic and financial welfare of the country.

Now, Manitoba – right in the middle of our vast country – might seem an odd place to talk about globalization. But this province, like the rest of Canada, is very much affected by global economic forces.

Over the years, we at the Bank of Canada have learned that the best contribution that monetary policy can make to the economic welfare of Canadians is to keep inflation low, stable, and predictable. We try to keep the annual increase in consumer price inflation at 2 per cent, which is the middle of a 1 to 3 per cent inflation-control range.