Canada Says More Time May Be Needed to Hit Inflation Target

The Bank of Canada said its 2 percent inflation target allows policy makers the flexibility to take extra time to meet their goal in situations such as a severe shock or economic slowdown.

Governor Mark Carney will keep using a horizon of 18 months to 24 months to bring inflation back to target in most cases, while using discretion when financial or economic conditions require otherwise, the Ottawa-based central bank said today.