Bank of Canada and Ottawa renew inflation target deal at two per cent
OTTAWA — The Bank of Canada and the federal government said Monday they have renewed their inflation target agreement for another five years in an effort to foster price stability and sustainable economic growth.
The target will continue to be two per cent — the midpoint of a range of one per cent to three per cent that the central bank deems acceptable.
The central bank and the government said low and stable inflation has helped underpin the Canadian economy and preserve confidence in the value of money.
“Controlling the pace of inflation at a steady and low level protects the purchasing power of all Canadians and helps sustain growth and job creation,” Finance Minister Bill Morneau said in a statement.