Central Banks
Macklem Says ‘Not the Time’ to Rethink 2% Inflation Target
- Bank of Canada launches review of monetary policy framework
- Will examine core inflation measures, shelter price impact
Tiff Macklem, governor of the Bank of Canada, speaks during an interview in Ottawa
Photographer: David Kawai/BloombergThis article is for subscribers only.
Bank of Canada Governor Tiff Macklem launched the central bank’s review of its framework, but strongly suggested that officials are likely to re-endorse the bank’s current approach to targeting 2% inflation.
“Now is not the time to question the anchor that has proven so effective in achieving price stability,” Macklem said in a speech in the Toronto area on Friday, marking the first time since 1995 that the bank has closed the door on rethinking the 2% target.