Agreement on the Monetary Policy Framework

The objective of Canada's monetary policy is to promote the economic and financial well-being of Canadians. Experience has shown that the best way monetary policy can achieve this goal is by maintaining a low and stable inflation environment. Doing so supports a strong and inclusive labour market that provides every Canadian with opportunities for a good quality of life.

Commentary and technical data relating to the 2021 renewal.

In 2021, the Bank of Canada and the federal government renewed the agreement on Canada’s monetary policy framework. To inform our discussions, the Bank conducted a broad range of public outreach activities between 2019 and 2021. This report summarizes our findings.

The Government of Canada and the Bank of Canada agreed that the inflation target will continue to be defined in terms of the 12-month rate of change in the total CPI, that it will continue to be the 2 per cent mid-point of the 1 to 3 per cent inflation-control range, and that the agreement will run for another five-year period, ending 31 December 2021.

Cover letter outlining the Bank’s recommendations for the target agreement, and detailing the Bank’s research of key issues related to the renewal.

Commentary and technical data relating to the 2016 target renewal.

In 2016, the Bank and the Government of Canada renewed their Inflation-Control Target agreement. Learn about our research priorities that led up to the renewal.

The Bank of Canada today released the document Renewal of the Inflation-Control Target: Background Information, which summarizes the key elements of Canada's inflation-targeting framework.

The primary objective of Canada's monetary policy is to enhance the well-being of Canadians by contributing to sustained economic growth, rising levels of employment and improved living standards.

Commentary and technical data relating to the 2011 target renewal.

The Bank of Canada today released the document Renewal of the Inflation-Control Target: Background Information, which describes Canada's experience with inflation targeting, reports on some key issues bearing on the framework for conducting monetary policy, and identifies issues warranting further research.

The primary objective of Canada's monetary policy is to enhance the well-being of Canadians by contributing to sustained economic growth, rising levels of employment and improved living standards.

Commentary and technical data relating to the 2006 target renewal.

The Bank of Canada today released the document Renewal of the Inflation-Control Target: Background Information, which provides additional details on the target arrangements and on how the Bank plans to implement them in order to increase the predictability of inflation over the longer term. This release follows the announcement yesterday by the Government of Canada and the Bank that the inflation-control target is being renewed for a period of five years to the end of 2006.

The objective of Canada's monetary policy is to support and advance national economic well-being by contributing to sustained economic growth, rising levels of employment and improved living standards. The best contribution monetary policy can make to securing this outcome is to preserve confidence in the value of money by providing individuals and businesses with the certainty of a stable, low-inflation environment for their economic decisions.

Commentary relating to the 2001 target renewal.

Technical data relating to the 2001 target renewal.

Technical data relating to the 2001 target renewal.

The Bank of Canada today released a joint statement of the Government of Canada and the Bank of Canada on the extension of the inflation-control targets.

December 1993 statement announcing the renewal of the agreement.

March 1991 statement announcing the renewal of the agreement.