The Financial Post reports in its Friday, May 3, edition that during a questioning session by Canadian senators, Bank of Canada Governor Tiff Macklem defended the central bank's inflation target of 2 per cent. The Post's Barbara Shecter writes that committee chair and senator Pamela Wallin asked Mr. Macklem why the bank does not raise the target to 3 per cent since inflation now sits close to that level after a series of interest rate hikes over the past two years. Mr. Macklem replied that changing the target when it gets difficult is not a feasible option. He said that the inflation target has been in place since 1995 and serves Canada well, including during major economic shocks like the COVID-19 pandemic and rising geopolitical tensions. Mr. Macklem emphasized the importance of the target in anchoring expectations and stated that changing it on the fly would not be appropriate. He maintained his message that central bankers need to be assured progress to tame inflation will be sustained -- and that the target will be reached despite a strengthening economy -- before cutting the overnight interest rate from 5 per cent, the peak reached after a series of hikes from just 0.25 per cent in March, 2022.