Bank of Canada Should Hold Overnight Rate at 1.25 Percent Next Week, Hike to 2.00 by Next Year: C.D. Howe Institute Monetary Policy Council
TORONTO, April 12, 2018 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) called for the Bank of Canada to maintain its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 1.25 percent at its next announcement on April 18, 2018. Looking further ahead, the Council called for a target of 1.50 percent in May, with further increases taking the target to 2.00 percent by April of 2019.
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-125-percent-next-week-hike-200-next-year-cd-howe-institute
The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada's most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.
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SOURCE C.D. Howe Institute
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Kristine Gray - phone: 416-865-1904; [email protected]
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