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Finance Minister François-Philippe Champagne used the budget to announce that he re-upped the Bank of Canada’s marching orders for another five years. The central bank once again has a mandate to treat “price stability” as its primary objective. (The Logic)
Talking point: In the early 1990s, Brian Mulroney’s government sought to protect the central bank’s independence by giving it a mandate to target inflation and then pledging to leave it alone to achieve its objective however it sees fit. That mandate is reviewed every five years, and the cycle repeats. The Bank of Canada equates price stability with keeping year-over-year changes in the consumer price index at two per cent. There was very little anticipation around this review; governor Tiff Macklem said in 2025 that abandoning the target would be a bad idea. Champagne apparently agreed.
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