The Bank of Canada's target in its monetary policy has been 2% inflation for the last 25 years. However, what the Bank of Canada has been doing for the last 7 years or so has been been rather different from what it did before.  It now sets interest rates below the inflation rate and gives no indication that it plans to change the policy even if it raises interest rates in the future. The result is that savers subsidize borrowers,  debt to income levels increase  and asset values are inflated well beyond 2%.