Bank of Canada's inflation mandate renewed: Economists react

“The very heavy emphasis on employment was notable, as was the sense that low-for-long will sometimes be needed to meet goals."

Prime Minister Justin Trudeau’s government announced on Monday that it will renew the Bank of Canada’s 2 per cent inflation target, while adding language that will give the central bank more flexibility to overshoot the target in order to achieve employment objectives. 

Here are some reactions from economists and analysts:

What Bloomberg Economics Says... “Over the short term, the renewal points to a patient approach to tightening, much like the framework change the Federal Reserve made in 2020. However, patience is not unlimited, and it would be a mistake to think recent inflation rates near 5 per cent represent what the BoC will tolerate in search of better job-market outcomes” -- Andrew Husby, economist