Canada’s cost of living is fairly low and stable and the central bank intends to keep it that way through interest rate changes, Bank of Canada Governor David Dodge said Monday.

In his speech to business economists in Washington today, Dodge dropped no direct hints about exactly when he next intends to boost interest rates to guard against inflation.

However, he made it clear that the central bank is ready to raise them if he sees signs of stronger inflation.

“There is no doubt in my mind that inflation-targeting is the right monetary policy framework for Canada,” Dodge told the National Association for Business Economics.

“In doing so, we fulfil our commitment to promote the economic and financial welfare of Canada.”

The central bank’s next opportunity to raise the key overnight interest rate of 2.50% comes on April 12.

Economists have predicted that, given the economy’s lacklustre growth, the Bank of Canada will likely wait until at least summer or even fall before boosting borrowing costs.

In contrast, the U.S. Federal Reserve has been raising rates south of the border and is expected to do so again on Tuesday with a quarter-point increase that would bring the fed funds rate to 2.75%.

Dodge used his speech to pitch central bankers in the United States on the value of setting an explicit inflation target. The Bank of Canada uses its inflation target to help set interest rates.

Dodge said the central bank’s target has helped Canadians to understand why the central bank adjusts rates, with contributes to controlled inflation.

“Focusing on domestic price stability. . .is the best contribution monetary policy can make to economic stabilization.”