There are two factors that are influencing the setting of monetary policy. First, we are anchored on the inflation target, so we're trying to determine the right path to return the Canadian economy and inflation in Canada to that 2% inflation target. Our current expectation is that in about nine quarters—so a little more than two years—the economy will return to full capacity and inflation will return to the 2% target.
The reason we expect that is that financial conditions, very much as a consequence of monetary policy but also of other factors—the influence of global financial conditions—are very stimulative in Canada, so borrowing rates for Canadian corporations are at all-time lows, borrowing rates for Canadian households are highly attractive, and the currency has come off a bit, which provides a little more stimulus on the margin for the Canadian economy. So those factors, as a whole, are providing a considerable amount of stimulus, which , in our view, will bring the economy back on a reasonable path, in a reasonable horizon, back to target. As well, if I may point out, our expectation is that from the middle of this year the Canadian economy will be growing at a rate above potential.
To the second part of your question—I'll be quick—reflecting the housing sector and the evolution of household imbalances, on the margin we do take into account what is happening in the household sector, and on the margin that influences policy to be less loose, if I can put it that way, than it otherwise would be.