Bank of Canada governor Tiff Macklem says flexibility is key as the bank prepares to review its rate-setting framework in a world undergoing an economic sea change.
Macklem discussed the upcoming mandate review in a speech in Mexico City today as that country’s central bank celebrates its 100th anniversary.
In his prepared remarks, Macklem touched on the shift to an inflation-targeting framework in the 1990s and suggested adaptation is required to address new economic trends and global trade changes.
As the Bank of Canada gears up for the 2026 mandate review, the governor says the committee is looking at how the central bank can use “flexibility in the framework” to face supply shocks.
Next, Macklem says the central bank will review the best indicators to measure core inflation.
He says the bank will also look into the interaction between monetary policy, housing affordability and inflation — and the demand for housing, which heavily depends on interest rates.
This report by The Canadian Press was first published Aug. 26, 2025.
