Bank of Canada renews 2% inflation target

Central bank plans to support employment

OTTAWA: The Bank of Canada will maintain its 2% inflation target for the next five years, but has formally been given licence to moderately overshoot it to “support maximum sustainable employment.”

In a mandate renewal released jointly with the Canadian government, the government directed the central bank to use monetary policy to boost employment levels as long as those efforts don’t jeopardise the broader objective of stable prices.