We’re reviewing our policy framework and tools
The Bank’s monetary policy framework is scheduled for renewal in 2021. Our agreement with the federal government on the goals of monetary policy is reviewed every five years.
In 2020, we’ll finish the work we’ve been doing since the last renewal in 2016. We have been thinking about whether we need to change either our policy goals or how we achieve them.
As part of this process, we’ll hold a number of round tables with stakeholders and conduct an online public consultation so anyone in Canada can share their views. We’ll summarize what we hear and post it, along with much of our research on the subject, on our website.
Then, in 2021, we’ll work with the Government of Canada on a formal agreement for our framework.
We’re also thinking about the best ways to account for things like high debt when we set interest rates.
Often this means weighing the benefits of helping the economy when it’s sluggish against the cost of adding to debt loads and risking further issues down the road. Measures that other authorities have in place can be very important when we’re thinking about these trade-offs.