Since 1991, the Bank of Canada has targeted an annual inflation rate of between one and three per cent, often landing in a sweet spot at two per cent.
It also could mean that the central bank keeps its trendsetting interest rate at the lowest level possible for longer stretches to help the economy recover from a downturn. Documents released by the bank say that a low-for-longer rate environment boosts the likelihood that inflation could overshoot the two per cent target as the economy recovers.
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