tiff macklem : renewal of the monetary policy framework opening statement by mr tiff macklem, governor of the bank of canada, at the press conference on the renewal of the monetary policy framework, ottawa, ontario, 13 december 2021. * * * the objective of canada's monetary policy is to promote the economic and financial well - being of canadians. experience has shown that the best way monetary policy can achieve this goal is by maintaining a low and stable inflation environment. doing so supports a strong and inclusive labour market that provides every canadian with opportunities for a good quality of life. currently, the reopening of the global economy is associated with elevated inflation in canada and abroad. while this is a global phenomenon, it makes maintaining a sound framework for monetary policy in canada all the more important. from a longer - term perspective, since the adoption of an inflation - targeting framework 30 years ago, consumer price index ( cpi ) inflation has averaged close to 2 percent, despite periods of both upward and downward pressures on inflation. the maintenance of low, stable and predictable inflation has also contributed to canada ’ s strong labour market performance. in the current context, canada ’ s inflation - targeting framework helps to ensure that inflation will return to 2 percent over the medium term. the government of canada and the bank of canada believe that the best contribution of monetary policy to the well - being of canadians is to continue to focus on price stability. the government and the bank also agree that monetary policy should continue to support maximum sustainable employment, recognizing that maximum sustainable employment is not directly measurable and is determined largely by non - monetary factors that can change through time. further, the government and the bank agree that because well - anchored inflation expectations are critical to achieving both price stability and maximum sustainable employment, the primary objective of monetary policy is to maintain low, stable inflation over time. this renewal of canada ’ s monetary policy framework is occurring at a time when changes to the economy are complicating the task of monetary policy. the global financial crisis and covid - 19 pandemic have had a significant impact on the global economy and financial system, and major trends such as shifting demographics and new digital technologies are altering the economic landscape. climate change and the long - term transition to net - zero greenhouse gas emissions will drive structural change in the canadian and global economies. also, there is now greater recognition, supported by economic research, that when the benefits of economic growth and opportunity are more evenly shared, it leads to

cannot directly tackle the threats posed by climate change, the bank will develop the modelling tools needed to take into account the important implications of climate change on the canadian economy and financial system. finally, recognizing the limits of monetary policy, the government and the bank also acknowledge their joint responsibility for achieving the inflation target and promoting maximum sustainable employment. 2 / 2 bis central bankers'speeches