Bank of Canada, the head of the audit, wants to leave the inflation goal by 2 % unchanged

By Promit Mukherje and David Ljunggren

Outoa, February 21 (Reuters) – Governor Tif Maclim said on Friday, saying that the central bank should be maintained in a specific review of 2026.

The bank and the Ministry of Finance review the target every five years and officially announce a decision. Macklem’s comments were distinguished the first time the ruler says what the goal should be before the consultations begin.

“In my view, now it is not the time to question the anchor, which has proven effective in achieving price stability,” Maclim said during a speech in Mississoga, Ontario.

The bank’s state is the current monetary policy to maintain inflation at the middle of the target range from 1 % to 3 %.

The 2026 review of the monetary policy framework will produce an agreement on the bank’s priorities.

“With the commercial struggle on the doorstep of our door, we need to focus our resources on the most urgent and important issues to review our framework,” said Maclim.

He reiterated that if US President Donald Trump goes on to threaten definitions on all imports from Canada, the economic impact will be severe.

“We may recover our current growth rate at the end, but the production level will be permanently less,” McKelim said, referring to the bank’s latest economic modeling. He embraced: “It’s more than just a shock – it’s a structural change.”

He said that the bank will consider whether it needs what he called a richer book of monetary policy, how inflation can be better measured, and the interaction of monetary policy with housing.

Maclim said that the American tariff and subsequent revenge against Canada could erase almost any local growth in 2025 and 2026 and cause one time rise in inflation.

“What the monetary policy – must be done – can make sure that the high prices do not become continuous inflation,” he said.

Simply, monetary policy needs a guarantee

Increased inflation. “

((Reuters Ottawa office))

Keywords: Canada Cenbank/