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Bank of Canada aims for flexibility in rate-setting framework review, says Macklem
The Bank of Canada plans to maintain a 2% inflation target while considering adjustments to core inflation measures and housing affordability in its 2026 mandate review.
- Governor Tiff Macklem told a Mexico City audience that flexibility is key as the Bank of Canada prepares to review its rate-setting framework during Mexico's central bank 100th anniversary.
- Macklem recalled the 1990s shift to inflation targeting and said the Bank of Canada has used inflation targeting since 1991 while examining how to measure core inflation and plans to keep its 2% inflation target.
- Currently, the Bank of Canada has held its policy rate at 2.75%, with core inflation measures closer to 3% keeping officials cautious ahead of the Sept. 17 interest rate decision.
- The review will consider which indicators best capture core inflation, possibly tweaking trim and median measures, and will examine how monetary policy affects housing affordability and demand.
- Macklem stressed that central banks must remain independent and emphasized accountability practices in his prepared remarks, yet he did not mention U.S. President Donald Trump's firing of Federal Reserve Governor Lisa Cook on Aug. 25.
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The Peterborough Examiner+11 Reposted by 11 other sources
Bank of Canada aims for flexibility in rate-setting framework review, says Macklem
Bank of Canada governor Tiff Macklem says flexibility is key as the bank prepares to review its rate-setting framework in a world undergoing an economic sea change.
·Peterborough, Canada
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Total News Sources13
Leaning Left8Leaning Right1Center2Last UpdatedBias Distribution73% Left
Bias Distribution
- 73% of the sources lean Left
73% Left
L 73%
C 18%
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