Thank you, Mr. Chair.
Thank you to the governor and the senior deputy governor for being here today in person.
Governor, you sound a little hoarse today and I think it's probably because you've been saying over and over to everyone who will listen to you that inflation is too high and that we need higher interest rates. You got a lot of things right and a lot of things wrong, the economy is moving to excess demand, and we note that you want to keep inflation expectations well anchored, and demand is exceeding supply.
Stephen Tapp from the Canadian Chamber of Commerce has noted that the nominal policy rate of 1% is still below the bank's estimate of the neutral rate, which is between 2% and 3%. He further noted that until your rate rises above 2% to 3%, “the Bank is pouring gas on the inflation fire”.
I know that the government can't help itself, it spends at any time it can, but you're different, Governor. Your institution is independent and your number one job, as of last December, is still price stability.
What is your explanation for continuing to pour gas right now on inflation?