Bank of Canada Governor Tiff Macklem says the central bank will be maintaining its inflation target of 2 percent as it reviews its monetary framework, but warned global shocks to trade and geopolitical uncertainty could raise inflationary pressures in Canada.
Macklem told the Chamber of Commerce of Metropolitan Montreal on Dec. 16 that the Bank is reviewing and renewing its monetary policy framework with the federal government, which it must do every five years.
“One thing we’re not reviewing is whether 2 percent is the best target. We are confident it is,” Macklem said, adding that the central bank’s inflation target has remained between 2 and 3 percent 80 percent of the time for the last 25 years….