Agreement on the Inflation-Control Target

In 1991, the Bank of Canada and the Minister of Finance agreed on an inflation-control target framework to guide Canadian monetary policy. The target agreement has been renewed several times since, most recently in 2021 to the end of 2026.

2021

December 13, 2021

Joint Statement of the Government of Canada and the Bank of Canada on the Renewal of 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.
Content Type(s): Press, Press releases
December 13, 2021

Our renewed monetary policy framework

Every five years, the Bank of Canada and the Government of Canada review and renew our agreement on Canada’s monetary policy framework. In 2021, we renewed Canada’s flexible inflation-targeting framework for 2022 to 2026.

2016

October 24, 2016

Joint Statement of the Government of Canada and the Bank of Canada on the Renewal of the Inflation-Control Target

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.
Content Type(s): Press, Press releases

2011

2006

2001

May 18, 2001

Bank releases background information on renewal of the inflation-control target

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.
Content Type(s): Press, Press releases
May 17, 2001

Joint Statement of the Government of Canada and the Bank of Canada on the Renewal of the Inflation-Control Target

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.
Content Type(s): Press, Press releases

1998

1993

1991