C.D. Howe Institute Monetary Policy Council Says Bank of Canada Should Hold Overnight Rate at 0.50 for Next 12 Months

TORONTO, July 7, 2016 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) today called for the Bank of Canada to keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 0.50 percent at its next announcement on July 13, 2016.  Looking ahead, the Council said the Bank should hold the target at 0.50 percent over the next 12 months.

The MPC provides an independent assessment of 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/cd-howe-institute-monetary-policy-council-says-bank-canada-should-hold-overnight-rate-050-next-12

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SOURCE C.D. Howe Institute

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