C.D. Howe Institute Monetary Policy Council Urges Bank of Canada to Hold Overnight Rate at 1.00 Percent for Next Six Months; Looks for 1.75 Percent by July 2015

TORONTO, July 10, 2014 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 1.00 percent at its next announcement on July 16, 2014. Looking ahead, the Council called for the Bank to hold the target at 1.00 percent through the rest of 2014, but called for a target of 1.75 by July 2015.

The MPC provides an independent assessment of the monetary stance appropriate for the Bank of Canada as it aims for its 2 percent inflation target. William Robson, the Institute's President and Chief Executive Officer, chaired the Council's 87th meeting.

To read the announcement go to: http://www.cdhowe.org/mpc-recommendations-july-2014/26726

SOURCE: C.D. Howe Institute

Kristine Gray - phone: [phone]; [email protected]