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

TORONTO, April 12, 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 April 17, 2012. While most members in the group felt that strength in domestic demand and growing household debt warranted increases in the overnight rate over time, the MPC's formal recommendation was for the overnight rate to remain at 1.00 through October, and rise to 1.50 percent by April 2013.

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 and individual recommendations go to: www.cdhowe.org

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