C.D. Howe Institute's Monetary Policy Council Urges Bank of Canada to Hold Overnight Rate at 1.00 Percent at Next Setting; Looks for 1.25 by June 2015

TORONTO, May 29^th, 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 June 4, 2014. Looking ahead, the Council called for the Bank to hold the target at 1.00 percent through the fall of this year, but called for a target of 1.25 by June 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. Finn Poschmann, the Institute's Vice President, Research, chaired the Council's 86th meeting.

To read the announcement go to: www.cdhowe.org

SOURCE: C.D. Howe Institute

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