Canada opts to retain 2% inflation target
Target remains, though central bank adopts new measures of core inflation
Canada has opted to retain its 2% inflation target, while adding new measures of core inflation and using a "risk management" approach to allow monetary policy the flexibility to take account of financial stability.
In a new five-year deal with the government, struck on October 24, the Bank of Canada chose to continue to target 2% inflation with a 1–3% tolerance band. The central bank's research found that while a higher inflation target could reduce the occurrence of zero lower bound episodes
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