Bank of Canada and Ottawa keep 2% inflation target in five-year framework renewal
Every five years the Government of Canada and the Bank of Canada review and renew the monetary policy framework. This renewal, announced November 5, keeps the 2% target, the symmetric 1% to 3% control range and the Bank's operational flexibility intact, and frames the post-pandemic inflation episode as an implementation challenge rather than a design flaw.
- The 2% inflation target and the 1% to 3% control range, measured as the 12-month change in CPI, are retained unchanged.
- Monetary policy will continue to be conducted symmetrically, with equal emphasis on deviations above and below target.
- The renewed agreement runs for a further five-year period ending December 31, 2031.
- The Bank frames the recent high-inflation episode as a challenge to implementation amid extraordinary global shocks, not a failure of the framework's design.