Bank of Canada renews inflation framework through 2031

Canada’s government and central bank have renewed their monetary-policy agreement for another five years, keeping price stability at its centre. The announcement confirms the framework that guides the Bank’s independent policy decisions.

The renewed agreement retains a 2% inflation objective, within a 1% to 3% range. Its inflation measure remains the annual change in the consumer price index, giving the public a consistent benchmark.

The Bank will treat inflation above and below the target symmetrically. It can respond flexibly to economic shocks while working to bring inflation back toward target, balancing that objective with economic growth and stable labour-market conditions.

The agreement extends to December 31, 2031. The joint statement also says the Bank has strengthened its analysis of supply-related shocks after reviewing the recent inflation episode, with those lessons informing its implementation of monetary policy.

Source: Bank of Canada; published 2026-11-05.

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