Tiff Macklem: Our monetary policy framework - continuity, clarity and commitment

Remarks (delivered virtually) by Mr Tiff Macklem, Governor of the Bank of Canada, to the Empire Club of Canada, Toronto, Ontario, 15 December 2021.

Central bank speech  | 
29 December 2021

Introduction

Good afternoon and thank you for the kind introduction. It's always a pleasure to speak to the Empire Club. The last time I was with you was in March 2020, and I was the Dean of the Rotman School of Management. I spoke about the economic impact of COVID-19-when we were just a few weeks into it. What a long journey it has been for everyone.

Today, I am pleased to have the opportunity to talk with you about Canada's monetary policy framework. Every five years the Government of Canada and the Bank of Canada review and renew the monetary policy framework. Two days ago, the Minister of Finance and I announced the renewed agreement. This important framework provides continuity and clarity and reaffirms our commitment to flexible inflation targeting.

The flexible inflation-targeting framework we've had in place for the past three decades has served us very well. It has delivered low, stable and predictable inflation. This has contributed to a more stable economic environment, so households and businesses can make spending and investment decisions with confidence. It has supported sustained growth in output, employment and productivity, and it has contributed to rising standards of living.