Bank of Canada to Maintain 2% Inflation Target in Renewed Framework
By Paul Vieira
OTTAWA--The Bank of Canada and the country's finance department agreed Thursday to renew the central bank's inflation-targeting framework for another five years.
The central bank will continue to set rate policy with the aim of achieving and maintaining 2% inflation, as reflected in the 12-month change in the consumer-price index. Central bank officials had previously signaled this was the expected path.
"The experience of the past five years has reinforced the value of a clear and credible inflation-targeting framework that provides the bank with the mandate and the flexibility to respond decisively to changing economic conditions," said the Bank of Canada and Canada's Department of Finance in a joint statement.
The latest CPI report indicated that prices rose 3.1% in September from a year ago, while indicators of core inflation -- which strips out energy and food prices -- remained stable and close to 2%. The Bank of Canada late last month raised its policy rate by a quarter point, to 2.5%, on the expectation that inflation will remain above 3% until late next year.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
November 05, 2026 17:05 ET (22:05 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
3 Stocks to Sell and 3 Stocks to Buy for November
3 of the Best Dividend Stocks to Own
The 10 Best Companies to Invest in Now
It’s Been a Long Time Since Bonds Looked This Good
United States