The Bank of Canada also has control over the monetary policies that are used to bring change to the economy. A big part of this is keeping the inflation rate of Canada between 1 and 3 percent. Its goal is to keep it around the midpoint at 2 percent which keeps the economy stabilized. When the economy is lower than two percent, the Bank of Canada makes changes to the different aspects of the monetary policy. The inflation rate in the past year has been lower than 2 percent for the most part until April of 2014. It increased from 1.5 to 2 percent which is the midpoint that Canada is trying to maintain. Lowering the target of the overnight rate is a good idea to increase aggregate demand. The changes made in the overnight rate results in changes in other interest rates. This will help increase aggregate
The Bank of Canada also has control over the monetary policies that are used to bring change to the economy. A big part of this is keeping the inflation rate of Canada between 1 and 3 percent. Its goal is to keep it around the midpoint at 2 percent which keeps the economy stabilized. When the economy is lower than two percent, the Bank of Canada makes changes to the different aspects of the monetary policy. The inflation rate in the past year has been lower than 2 percent for the most part until April of 2014. It increased from 1.5 to 2 percent which is the midpoint that Canada is trying to maintain. Lowering the target of the overnight rate is a good idea to increase aggregate demand. The changes made in the overnight rate results in changes in other interest rates. This will help increase aggregate