The Bank of Canada’s inflation-control target is:

Answer

2 %, the midpoint of a 1–3 % range

Options - A. 2 %, the midpoint of a 1–3 % range - B. 0 %, a stable price level - C. A 1–3 % range with no midpoint - D. 2 % growth in the price level over five years Why - A. Correct — the 1–3 % band is the tolerance; 2 % is the point the Bank aims at. - B. Zero inflation is not the target; a small positive rate leaves room to cut rates and avoids deflation. - C. The band exists, but the Bank targets its midpoint — policy is set to return inflation to 2 %. - D. The target is an annual inflation RATE, not cumulative price-level growth over the agreement’s term.

Bank of Canada, "Understanding our policy interest rate" (bankofcanada.ca, 2025) — adapted with attribution; Bank of Canada content is available free of charge at bankofcanada.ca; core areas, aggregates and the target per bankofcanada.ca observed 2026-09-17 (verified-facts §2.6 F07–F09); OpenStax, Introduction to Business (CC BY 4.0) §15.1 — functions-of-money shape only