Explainers

• September 29, 2025

  Why we target 2% inflation

  Inflation measures the rate of growth in prices, and the Bank of Canada aims to keep it at 2%. When inflation is low, stable and predictable, the entire economy works better.

  Content Type(s): Explainers Subject(s): Monetary policy, Economy/Economic growth, Inflation, Inflation targeting framework
• September 3, 2025

  What is a flexible exchange rate?

  Canada has a flexible exchange rate. The value of our dollar is not fixed to the value of any other currency or to a precious metal such as gold.

  Content Type(s): Explainers Subject(s): Financial system, Financial markets, Monetary policy, Economy/Economic growth