BOC and the Department of Finance agreed a five-year monetary policy framework
on Thursday that keeps the inflation target at 2%. The framework, effective Jan.
1, preserves the 1–3% control range and the 2% midpoint that has guided policy
for 35 years. The BOC said it will continue to use flexibility within the 1–3%
range, where conditions allow, to pursue sustainable full employment. The joint
statement said monetary policy will be implemented symmetrically, treating
deviations above and below the target equally.
