The Bank of Canada will be upholding its 2% inflation target for the next five years, to be defined in terms of the 12-month rate of change in the total consumer price index, the central bank said in a joint statement with the Canadian government on December 13.
The BoC said that this renewed mandate gives its framework greater flexibility to respond to stark changes in the global and domestic financial environments.
“This renewal of Canada’s monetary policy framework is occurring at a time when changes to the economy are complicating the task of monetary policy,” the BoC said. “The global financial crisis and COVID-19 pandemic have had a significant impact on the global economy and financial system, and major trends such as shifting demographics and new digital technologies are altering the economic landscape.” # SANDI HALPERN # SOLD # LEASED #INFLATION RATE
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