Overnight, the Bank of Canada (BoC) agreed to extend the 2% annual inflation mandate, which was set to expire on January 1. This allows BoC policymakers more flexibility in combating rising prices while waiting for the economy to absorb labor market slack. Inflation in Canada is at a nearly 20 year high. The mandate is now in place until 2026. The Canadian Dollar failed to react to the news, but falling oil prices have weighed on the Loonie.
