Bank of Canada Weighs Clearer Policy Playbook for Supply Shocks

Ottawa, 6 May 2026 – The Bank of Canada is considering whether it needs a clearer policy playbook to manage supply shocks, as central banks around the world reassess how they should respond when inflation is driven by disruptions beyond traditional demand cycles.

The discussion comes after several years of shocks linked to the pandemic, energy markets, global supply chains, geopolitical tensions and climate-related events. These disruptions have shown that inflation can rise sharply even when domestic demand is not overheating, complicating the task of central banks that rely mainly on interest rates to manage price stability.