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Economic Viewpoint

Bank of Canada’s mandate renewed

October 26, 2016
François Dupuis, Vice-President and Chief Economist • Hendrix Vachon, Senior Economist

Since 1991, the Bank of Canada (BoC) has set its monetary policy decisions based on an inflation target, which is measured by the annual change in the total consumer price index (CPI). In the early 1990s, inflation was higher than it is today and cutting inflation was the primary objective. As of 1995, the objective was to keep inflation at between 1 and 3% with a median target of 2%. The Canadian government together with the BoC renewed this target in 1998, 2001, 2006 and in 2011. A decision to renew this target was made on October 24.