The main reason is that, as explained in Section II, 2 percent is a widely shared goal among many central banks in advanced economies as the medium- to long-term inflation target. The next question is thus why central banks should choose the value of 2 percent.
The Government of Canada and the Bank of Canada agreed that the best contribution of monetary policy to the well-being of Canadians is to continue to focus on price stability. The Government and the Bank also agreed that monetary policy should continue to support maximum sustainable employment.