Bank of Canada mulls change to inflation target

KINGSTON, Ontario, Aug 24 (BestGrowthStock) – The Bank of Canada
said on Tuesday that changing its 2 percent inflation target
could bring economic benefits, but cautioned that such changes
must not sacrifice price stability.

The bank has been researching the options of either
lowering its inflation target or adopting an alternative
price-level target as it prepares to renew an agreement with
the government at the end of 2011.

“Shifting to a lower inflation target and/or moving to a
price-level target are still possibilities, and in some
respects look even more promising than they did before the
crisis, although other aspects of our research results and
recent experience lend an extra air of caution,” Bank of Canada
Deputy Governor John Murray said in a speech to the Canadian
Association for Business Economics in Kingston.
(Reporting by Ka Yan Ng; editing by Rob Wilson)

Bank of Canada mulls change to inflation target