Bank of Canada Renews Framework With Focus on 2% Inflation Target

07:43 PM EST, 11/05/2026 (MT Newswires) -- The Bank of Canada renewed its monetary policy framework, reaffirming its 2% inflation target as its primary priority while removing references to actively pursuing maximum sustainable employment, Bloomberg reported Thursday. The five-year agreement, announced jointly with the federal government, also removes references to climate change while retaining flexibility to respond to economic shocks. The framework maintains equal emphasis on inflation deviations above and below the target, the report said. The renewal comes as inflation remains persistent and follows the central bank's recent increase in borrowing costs to 2.5%, its first rate hike in more than three years, Bloomberg reported.