Canada Bank Says 2% Inflation Target Non Negotiable

[Economy 53,087]

https://www.bnnbloomberg.ca/business/economics/2025/08/26/bank-of-canada-governor-will-not-review-2-inflation-target-next-year/

 

Canada's Central Bank has confirmed that there will be no review on the 2% inflation target because its a target that has proven its worth in price stability and that in current uncertain times is not the time to mess with it

 

Unlike USA and some other Nations which have dual mandates (full employment and inflation targets)... Canadas Central Bank targets purely inflation rate.

 

Additionally some Central Banks have floated the idea of accepting higher inflation ranges as acceptable. Canadas Central Bank has remained more conservative and traditional ok the matter sticking with a strict 2% target

 

Currently Inflation has been running at about 1.9% and 2.7% (depending if were looking at CPI or Core inflation), meaning it has been close to target but generally marginally above.