Bank of Canada weighs inflation target increase
Consideration should be given to an inflation target that is above 2%, deputy governor argues
The Bank of Canada (BoC) is reviewing the feasibility of raising its inflation target above 2%, Agathe Côté, a deputy governor, has confirmed.
Such a move would mark a major policy shift in the developed world, where conventional central bank policies continue to be hobbled by the zero-lower-bound (ZLB) six years after the financial crisis.
It would also mark a complete reversal of the thinking that dominated the BoC's research on monetary policy just three years ago. "The bank's research
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