Thank you, Mr. Chairman. Welcome, Mr. Carney.
It is obvious, and you have indicated so, that your simple presence here and the answers that you provide us with could have a tightening or a non-tightening effect on monetary policy. We are well aware of this.
The entire monetary policy of Canada, of your bank, is based upon a target inflation rate of 2%. For a very long time now — it was also the case for your predecessor —, it has been a religion to want to control at all cost this 2% target with a lower range. The problem is that, in the private sector, one could already be fearful of the fact that stubbornly relying on a rate of inflation might, for example, bring about a very high exchange rate, very rapid fluctuations of the exchange rate and dollar parity.
You say that Canada's productivity is rather weak, that use is not being made of Canada's full capacity and that American demand is low. Is there not a danger of a too rapid tightening? Furthermore, Mr. McCallum likes to talk of his Royal Bank. This bank increased mortgage rates rather quickly. A form of escalation took place and it seems that things are moving more quickly than you had hoped.
Obviously, one can never correct what one has said, but you indicated, last week, that at the end of the second quarter, the rate would rise. Is there not a danger of acting too quickly in tightening monetary policy? Obviously, I am thinking of Quebec, of the SMEs and the manufacturers of my province.