Treasury
Bank of Canada Framework Review Sees Strong Backing for 2% Inflation Target, Housing Concerns
Strong support for maintaining Canada's 2% inflation target and flexible inflation-targeting framework emerged as a key finding in the Bank of Canada's latest consultation report published on Thursday, ahead of its 2026 monetary policy framework renewal."The feedback the bank received indicates that Canadians value the stability the framework provides," the central bank said in a Thursday statement. "Support for maintaining flexible inflation targeting and the 2% inflation target was strong."Every five years, the Bank of Canada and the government review their inflation-targeting framework, with this round focusing on how policy can adjust to more frequent supply shocks, greater economic volatility and challenges in measuring underlying inflation, especially in housing, said BoC.The central bank held community consultations and spoke to researchers, the private sector, and civil society, it said. They broadly support maintaining Canada's 2% inflation target, although many highlighted cost-of-living and housing affordability pressures, as well as the need for better communication, the bank said.The report was submitted to the BoC's Governing Council and the Department of Finance on renewing the monetary policy framework, which is due to be updated by the end of the year, added the central bank.
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