that better captures today ’ s consumption patterns. we talk about this work in box 2 of the mpr. the adjusted price index shows that inflation is probably not as low as the official cpi suggests, although the difference is not large. in the past couple of months, inflation by either measure has been close to zero. we expect it to remain below target while low prices for gasoline, travel, clothing and other items are pulling it down, and while demand is weak. the pandemic has reduced both supply and demand in the economy, but we judge that the effects on demand are larger. as demand recovers and economic slack is absorbed, inflation will gradually move back up towards our 2 percent target. the governing council also discussed the role our extended toolkit is playing to support the economy. our purchase programs were initially aimed at improving market functioning and unclogging the financial system, allowing the monetary policy transmission mechanism to work. with that objective largely achieved and the economy reopening, these programs — particularly the large - scale purchases of government of canada bonds — are now working through more channels, which we elaborate on in the mpr. the combination of the very low policy rate and asset purchases is providing considerable monetary stimulus. to sum up, the canadian economy has been hit by a historic shock, which has demanded a historic policy response. the early signs from the reopening phase are positive, but we expect the recuperation phase to be bumpy and protracted. as the economy moves from reopening to recuperation, it will continue to require extraordinary monetary policy support. the governing council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. in addition, to reinforce this commitment and keep interest rates low across the yield curve, the bank is continuing its large - scale asset purchase program at a pace of at least $ 5 billion per week of government of canada bonds. this qe program is making borrowing more affordable for households and businesses and will continue until the recovery is well underway. to support the recovery and achieve the inflation objective, the bank is prepared to provide further monetary stimulus as needed. with that, senior deputy governor wilkins and i will now be happy to take your questions. 2 / 2 bis central bankers'speeches

markets last year. the appreciation of the singapore dollar led to a negative foreign exchange translation effect of s $ 8. 7 billion. the singapore dollar strengthened 4 % against the pound sterling, 5 % against the euro, and 9 % against the japanese yen. total expenditure increased to s $ 2. 8 billion, due mainly to higher interest expenses on domestic money market operations. conclusion in conclusion, let me return to where i started – inflation. the current bout of inflation will eventually end. question is : how long will it take and how much will the economy have to slow down. taming inflation is like trying to slow down a speeding car on a gentle slope. it takes a combination of forcefulness and calibration. if you do not depress the brakes early enough or hard enough, you cannot break the speed momentum – likewise, monetary policy needs to act early and decisively. but if you jam the brakes too hard, the car may skid or even topple over – the economy may go into a recession. so you have to pump the brakes progressively, to gradually slow down the car to a more sustainable cruising speed. this is why central banks all over the world tighten monetary policy in a series of well calibrated steps and closely monitor the impact of their actions before deciding on the next step. and that is exactly what mas too is doing. which is why we are not going to say anything about what we might or might not do in october!