Bank of Canada renews five-year framework, prioritizing 2% inflation target
The Bank of Canada and Canada’s Department of Finance released a renewed five-year monetary policy framework that retains the 2% inflation target and narrows its focus on price stability. The document removes a commitment to actively seek maximum sustainable employment when conditions warrant, as well as mentions of climate change. It preserves equal emphasis on inflation above and below target and flexibility in returning inflation to target during shocks.