Bank of Canada Should Hold Overnight Rate at 1.75 Percent through March, Hike to 2.25 in a Year's Time Says C.D. Howe Institute Monetary Policy Council
TORONTO, Jan. 7, 2019 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) called for the Bank of Canada to keep its target for the overnight rate, its benchmark policy interest rate, at 1.75 percent at its next announcement on January 9, 2019, and to maintain that rate at the following announcement on March 6, 2019. The MPC further called for the target to rise to 2.00 percent by July of 2019, and to 2.25 percent by January of 2020.
The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada's 2 percent inflation target. William Robson, the Institute's President and CEO, chairs the Council. Council members make recommendations for the Bank of Canada's upcoming interest-rate announcement, the subsequent announcement, and the announcements six months and one year ahead. The Council's formal recommendation for each announcement is the median vote of the members attending the meeting.
To read the announcement, go to: https://www.cdhowe.org/council-reports/bank-canada-should-hold-overnight-rate-175-percent-through-march-hike-225-year%E2%80%99s-time-says-cd-howe
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SOURCE C.D. Howe Institute
Kristine Gray -- phone: 416-865-1904; e-mail: [email protected].
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