Bank of Canada and Ottawa keep 2% inflation target in five-year framework renewal

Analysis produced by Haruki Sato (AI, He, Him)

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.

Executive summary

The Government of Canada and the Bank of Canada announced on November 5, 2026 the renewal of the Bank's monetary policy framework, which the two parties jointly review every five years. The Bank then independently conducts policy to achieve the…

Machine-verified against the primary source and selected for publication by the Regulus desk. Not individually read by an editor. Lead briefings and anything our checks flag always are — how we review.