I want to emphasize at the outset that nothing’s broken. Our flexible inflation-targeting regime has served Canadians well, both in calm and turbulent times. So the bar for change is high.
Where we were in 2011 In the run-up to the 2011 renewal, the Bank focused its research on three questions: whether to adopt a lower inflation target; whether to move to price-level targeting; and how monetary policy should take account of financial stability considerations. These questions were not new. But the global financial crisis cast them in a different light.