C.D. Howe Institute's Monetary Policy Council Urges Bank of Canada to Hold Overnight Rate at 1.00 Percent

TORONTO, March 6, 2012 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) today recommended that the Bank of Canada maintain its target for the overnight rate, the very short-term interest rate the Bank targets for monetary policy purposes, at 1.00 percent at its next announcement on March 8, 2012. Tension between concerns about inflation running above target domestically and fear of adverse events abroad led the group, on balance, to recommend that the overnight rate should stay at 1.00 percent over the coming year.

The MPC is a panel sponsored by the C.D. Howe Institute to provide an independent assessment of the monetary stance most appropriate for the Bank of Canada as it seeks to achieve its 2 percent inflation target. William Robson, the Institute's President and CEO, chairs the Council.

For the full report go to: www.cdhowe.org.

Contact: Kristine Gray - phone: [phone]; e-mail: [email protected].