Bank of Canada reviews policy framework to add flexibility
Updated
Updated · Bloomberg · May 6
Bank of Canada reviews policy framework to add flexibility
6 articles · Updated · Bloomberg · May 6
The renewal, conducted with the federal government, is expected to keep the 2% inflation target unchanged despite Canada’s inflation peaking at 8.1% in mid-2022.
Former deputy governors Lawrence Schembri and Paul Beaudry said policymakers need room to avoid reacting too harshly to supply shocks such as tariffs, oil spikes or war-driven disruptions.
The five-year framework guides how the central bank explains rate decisions and seeks to bolster credibility after inflation stayed above 3% until 2024.
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