Bank of Canada to weigh up alternatives to inflation targeting

capital framework

The Bank of Canada will conduct a “full horse race” to assess inflation targeting alternatives and related policy toolkits, ahead of its 2021 monetary framework renewal.

The experience gained since the financial crisis shows the central bank’s inflation targeting framework “is not perfect”, deputy governor Carolyn Wilkins said during a speech on November 20.

The key challenge the current framework faces is that the central bank estimates the neutral interest rate to be around 2.5% to 3.5%.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: