down. we know that we will need to remain vigilant. 5 / 7 bis - central bankers'speeches but the progress we've made in restoring price stability is considerable and it's real. when i gave my year - end speech last year in vancouver, the latest inflation reading was 6. 9 %. today it's less than half that, and further reductions in inflation are in the pipeline. this progress has not been without cost. many canadians are feeling squeezed by higher interest rates. at the bank, we are doing our best to balance the risks of overand under - tightening. but if we learned anything from the bitter experience with inflation in the 1970s, the biggest mistake would be to waver in our resolve to control inflation and lose the public's trust. the inflation surge that has hit canada and the world in the last two years has taught us some important lessons. we are taking these lessons on board, and we will continue to learn and adapt, guided by our commitment to delivering price stability for canadians. thank you. i would like to thank daniel de munnik and brigitte desroches for their help in preparing this speech. 1 see, in particular, a. carstens, " a story of tailwinds and headwinds : aggregate supply and macroeconomic stabilisation " ( speech to the jackson hole economic symposium, jackson hole, wyoming, august 26, 2022 ) and c. lagarde, " policymaking in an age of shifts and breaks " ( speech to the jackson hole economic symposium, jackson hole, wyoming, august 25, 2023 ). 2 see bank of canada, business outlook survey - third quarter of 2023 ( october 2023 ) for results from the most recent business outlook survey and business leaders'pulse. for details about updated labour market benchmarks, see e. ens, k. see and c. luu, " benchmarks for assessing labour market health : 2023 update, " bank of canada staff analytical note no. 2023 - 7 ( may 2023 ). for a new mortgage analysis, see bank of canada, financial system review - 2023 ( may 2023 ). additionally, see o. kryvtsov, j. c. macgee and l. uzeda, " the 2021 – 22 surge in inflation, " bank of canada staff discussion paper no. 2023 - 3 ( january 2023 ) ; o. bilyk, t

. grieder and m. khan, " markups and inflation during the covid - 19 pandemic, " bank of canada staff analytical note no. 2023 - 8 ( june 2023 ) ; p. bouras, c. bustamente, x. guo and j. short, " the contribution of firm profits to the recent rise in inflation, " bank of canada staff analytical note no. 2023 - 12 ( august 2023 ) ; r. asghar, j. fudurich and j. voll, " firms'inflation expectations and price - setting behaviour in canada : evidence from a business survey, " bank of canada staff analytical note no. 2023 - 3 ( february 2023 ) ; and s. birinci, y. park, t. pugh and k. see, " uncovering the differences among displaced workers : evidence from canadian job separation records, " bank of canada staff working paper no. 2023 - 55 ( october 2023 ). 3 see d. coletti, " a blueprint for the fourth generation of bank of canada projection and policy analysis models, " bank of canada staff discussion paper no. 2023 - 23 ( october 2023 ). 6 / 7 bis - central bankers'speeches 4 see bank of canada, " bank of canada announces appointment of non - executive deputy governor, " press release ( january 16, 2023 ). 5 see bank of canada, summary of governing council deliberations ( 2023 ). 6 see bank of canada, " lessons learned and looking ahead ", speech summary ( december 2023 ). 7 / 7 bis - central bankers'speeches