The Globe and Mail reports in its Thursday edition that Governor Stephen Poloz said Wednesday the Bank of Canada was leaving its overnight rate at 0.5 per cent with inflation remaining in the lower end of its 1-per-cent to 3-per-cent range. The Globe's Jeremy Kronick writes that two things stand out. First, the interest-rate decision came with an accompanying cut to the bank's forecast for Canadian economic growth due to underwhelming exports and a slowdown in business investment. Second, of late we have seen sterner warnings from the bank reiterating the dangers of the overheated Toronto and Vancouver housing markets and unsustainable levels of household debt. These two realities are often at loggerheads when it comes to monetary policy decisions. The BOC targets low, stable and predictable inflation over the medium term. This contributes to higher standards of living than would be the case under a less predictable regime. Research shows that central banks that target inflation do better at creating a predictable environment than those that do not. Given both the most recent and previous few years worth of inflation data, the bank is achieving its primary objective.