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

TORONTO, Aug. 30, 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 it targets for monetary policy purposes, at 1.00 percent at its next announcement on September 5, 2012. The Council further recommended that the Bank hold the overnight rate target at 1.00 through March of 2013, and called for a target of 1.25 percent by August of next 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 with individual member votes go to www.cdhowe.org.

SOURCE: C.D. Howe Institute

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