Fact 14.1.1

Inflation Control Target Renewal

Every five years, the Bank of Canada and the Government of Canada review and renew our agreement on Canada's monetary policy framework. In 2021, we renewed Canada's flexible inflation-targeting framework for 2022 to 2026.
Source: www.bankofcanada.ca

Refer to Fact 14.1.1. In the inflation control agreement, the Government of Canada and the Bank of Canada agree to all of the following statements except which one?

Question

Fact 14.1.1  
 
 Inflation Control Target Renewal 
 
 Every five years, the Bank of Canada and the Government of Canada review and renew our agreement on Canada's monetary policy framework. In 2021, we renewed Canada's flexible inflation-targeting framework for 2022 to 2026. 
 Source: www.bankofcanada.ca 
 
 Refer to Fact 14.1.1. In the inflation control agreement, the Government of Canada and the Bank of Canada agree to all of the following statements  except  which one?

Accepted Answer

If the CPI becomes too volatile, in the future the target will be defined in terms of the 12-month rate of change in the core CPI.

Answer

The inflation-control range is 1 percent to 3 percent a year.

Answer

The target will continue to be defined in terms of the 12-month rate of change in the total CPI.

Answer

The agreement will run for five years.

Answer

The inflation target will continue to be 2 percent per year.

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Fact 14.1.1 Inflation Control Target Renewal Every five years, the Ba...

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