Building on success

Our renewed agreement

In the end, the Government and the Bank agreed that the best contribution monetary policy can make to the well-being of Canadians is to continue to focus on price stability.

Under the 2022–26 agreement, the cornerstone of our framework remains the 2 percent inflation target inside a control range of 1 to 3 percent. The agreement notes that we will continue to use the flexibility of the framework to actively seek maximum sustainable employment—that is, the highest level of employment we can achieve without triggering a rise in inflation.

The primary objective of monetary policy is to maintain low and stable inflation over time. We will be clear about how we will continue to use the flexibility of the framework and our extended monetary policy tools, when circumstances warrant, to respond to changes in our domestic and global economy.