Overview

• Macklem confirmed the 2% midpoint will not be reconsidered during the Bank of Canada’s 2026 monetary policy framework renewal.
• The announcement, delivered in a speech in Mexico City, marks the first explicit public commitment to keep the target unchanged.
• Ahead of the review, officials are focusing on flexibility to handle supply shocks, improving core inflation metrics, and studying how policy interacts with housing.
• The policy rate remains at 2.75% after three consecutive holds following earlier cuts.
• Macklem warned that U.S. tariffs and shifting supply chains could raise inflation variability and add upward pressure on prices.