Watching conditions and demand pressures As we at the Bank of Canada set monetary policy, we watch all the events affecting our economy, including global geopolitical, economic, and financial conditions. We do this with a view to keeping domestic inflation near the 2 per cent midpoint of Canada’s inflation target range of 1 to 3 per cent.
As we have often said, delivering an environment of low, stable, and predictable inflation is the best contribution that monetary policy can make to a strong, sustainable economy and rising living standards for Canadians. Such a low-inflation environment also helps keep our economy near its production potential over time.