The Government of Canada and the Bank of Canada jointly review and renew the Bank’s monetary policy framework every five years. The Bank then independently conducts monetary policy to achieve the framework’s goals. The Government and the Bank agree that monetary policy must work to promote the economic and financial well being of Canadians. We also agree that the best way monetary policy can do this is by keeping inflation low, stable, and predictable, thereby protecting Canadians from large increases in the cost of living. A credible and well understood monetary policy framework that focuses on price stability helps the economy grow, supports investment and job creation, and fosters confidence in Canada’s economy.