’ s monetary policy implementation system : does the evolving environment support maintaining a floor system? ” bank of canada staff discussion paper ( forthcoming ). 8 see d. lopez - salido and a. vissing - jorgenson, “ reserve demand and quantitative tightening, ” federal reserve board ( november 2022 ). 9 this is to say that, in ordinary times, we routinely buy assets to offset the ongoing growth of currency in circulation. more specifically, once we are at the steady - state level, we will start buying goc bonds and treasury bills again. we will also resume our regular term repo operations. - 8category / categorie : protected b / protege b quantitative tightening is happening, but it will take time to run its course. conclusion it ’ s time for me to wrap up. the covid - 19 pandemic was certainly unprecedented, and it merited a strong response from the bank. let me re - emphasize that this level and type of intervention should not be expected with every episode of market turbulence in the future. we will do some things differently next time if the need arises. this includes putting in place measures to further mitigate moral hazard. after the global financial crisis, we learned a lot by carefully reviewing the effectiveness of our response. that work helped inform our response to the pandemic, just as the work we are doing now will help us respond better to future crises. and it ’ s important that we remain nimble in response to the uncertain times we ’ re in. in the past month alone we ’ ve seen important developments — headline inflation has dropped, and the risk appetite in global markets has pulled back, partly reflecting the increased stress in global banking that i noted at the beginning of my speech. at the same time, the labour market in canada remains tight and this is putting upward pressure on many services prices. we continue to expect consumer price index ( cpi ) inflation to come down in the months ahead, but we will need to see further slowing in core inflation to get cpi inflation back to the 2 % target. we are also keeping a close eye on stresses to global banking systems as we turn our attention to the april monetary policy report. we will consider the macroeconomic impact of this evolving situation as we put together our next projection. we ’ ll be looking specifically at potential spillovers into the real economy to the extent that financial conditions tighten and there are broader confidence effects. to conclude, we will continue learning from our actions

policy interest rate. in the event of severe stress in the financial system, we have a range of tools we can use to provide liquidity against good collateral and keep credit flowing. the third point is that price and financial stability can interact, and we take this into account. financial stress will generally have implications for the calibration of monetary policy. financial stress tightens financial conditions - this means that loans become more expensive and harder to get. in the current environment, monetary policy has already tightened financial conditions - that is the intended consequence of our policy rate increases. but if financial stress were to lead to more tightening than expected and if this were to persist, we would need to take this into consideration as we set the policy rate to achieve our inflation target. at the same time, the financial system needs to adjust to higher interest rates. this underscores the importance of sound risk management in financial institutions and vigilant supervision to identify and manage risks as the economy slows and the cost of funding adjusts to higher interest rates. conclusion let me conclude so we can open the floor for discussion. we're forecasting inflation to fall quickly to about 3 % this summer and to reach the 2 % target near the end of 2024. the projected decline from 3 % to 2 % is both slower and more uncertain. with growth anticipated to be weak through the rest of the year before picking up gradually next year, we expect services price inflation to ease and overall inflation to converge on the 2 % target. but several things still have to happen for services price inflation to moderate in line with our forecast, and we are watching these closely. last month, governing council decided to hold its policy rate steady at 4½ % as we assess whether monetary policy is restrictive enough to return inflation to the 2 % target. 4 / 5 bis - central bankers'speeches we know that monetary policy works with a delay, and the effects of the tightening we've undertaken to date have not yet fully worked their way through the economy. if we start to see signs that inflation is likely to get stuck materially above our 2 % target, we are prepared to raise rates further. we also stand ready to address financial instability. recent global financial stresses have had muted effects here in canada, but if more severe stress emerges, we have the tools to provide liquidity while we continue to work toward restoring price stability. the adjustment to higher interest rates hasn't been easy, but the alternative - continued high inflation -