Government of Canada Renews Inflation-Target Agreement With the Bank of Canada
October 24, 2016 – Ottawa, Ontario – Department of Finance Canada
Maintaining low, stable and predictable inflation is essential to foster an environment in which middle class Canadians can prosper. Price stability contributes to balanced, sustainable and inclusive economic growth.
Minister of Finance Bill Morneau today announced that the Government of Canada and the Bank of Canada have agreed to renew Canada’s flexible inflation-target regime for another five years to the end of 2021. Under this renewed agreement, the inflation target will continue to be the 2 per cent mid-point of the 1 to 3 per cent inflation-control range.
The commitment by the Government and the Bank of Canada to this inflation-control target will ensure that Canadians continue to derive the economic and social benefits from low, stable and predictable inflation and will underpin confidence in Canada’s economic prospects in the coming years.
“Canada has a tried-and-true inflation-targeting regime, which was brought in 25 years ago. It has afforded Canadians low, stable and predictable price growth for a generation. 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.”
- Bill Morneau, Minister of Finance
- Joint Statement of the Government of Canada and the Bank of Canada on the Renewal of the Inflation-Control Target
Office of the Minister of Finance
Department of Finance Canada