Governor Tiff Macklem underscored that price stability is central to the Bank of Canada’s renewed mandate and indicated that any new flexibility will apply only at times when inflation is low or the economy is weak.
In a speech Wednesday, Macklem provided more insight into the central bank’s new marching orders, which included some leeway to allow inflation to overshoot the central bank’s 2% target. Macklem made it clear that flexibility won’t apply in situations -- like now -- when inflation is way above target.
