The Financial Post reports in its Thursday, June 24, edition that Bank of Canada Governor Tiff Macklem is in the final stages of a mandate review that could see him request more authority from Prime Minister Justin Trudeau's government to run the economy hot.
A Bloomberg dispatch to the Post reports that the BOC's five-year inflation targeting mandate is up for renewal this year, with few signs a major overhaul is in the works.
However, Mr. Macklem might lean toward design and communication changes to the 2-per-cent target, perhaps by focusing on labour-market metrics or putting more emphasis on the BOC's allowable range for inflation. That could give him some more flexibility to address under-performance in the economy at a time when other central banks are doing the same.
The U.S. Federal Reserve adopted so-called average inflation targeting last year -- on top of its dual maximum employment mandate -- that allows the U.S. central bank to overshoot its 2-per-cent target. The European Central Bank is also in the midst of potentially its biggest policy overhaul in almost two decades.
The Bloomberg item goes on at length at what the BOC is likely considering in its review.
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