Governor Tiff Macklem previewed his priorities for 2025 in Vancouver. “Critically important,” he said, will be an assessment of the way the central bank conducts monetary policy, a periodic exercise officials conduct before the government resets the Bank of Canada’s five-year mandate. (The Logic)

Talking point: Macklem’s current marching orders—to keep inflation at about two per cent, while looking for opportunities to boost hiring—date to December 2021, the aftermath of the COVID-19 crisis. Inflation surged soon after, surprising policymakers and prompting Macklem to respond with the highest interest rates in decades. Much of that inflation was caused by supply shocks, raising questions about whether the Bank of Canada’s response was appropriate, since monetary policy primarily influences demand. Macklem said he hasn’t settled on a research program, but indicated that officials will explore whether the inflation target should be higher and how monetary policy affects housing affordability. Whatever they decide, the work will be oriented to readying the central bank “to fight the next battle, not the last one,” Macklem said.