The Bank of Canada agreed with the federal government to keep the flexible inflation targeting framework the next five years. Also, monetary should continue to support maximum sustainable employment.
Governor Tiff Macklem said, “even as the complications of reopening the global economy have caused inflation in Canada and many other countries to rise, medium and longer-run inflation expectations in Canada have remained well anchored on the 2 percent target.”
“Keeping inflation expectations well anchored is key to completing the recovery and getting inflation back to target,” he noted.
