C.D. Howe Institute's Monetary Policy Council Urges Bank of Canada to Raise
Overnight Rate to 0.75 Percent, With Increases to 1.50 in January and 2.25
Percent by July 2011

TORONTO, July 15 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) today recommended that the Bank of Canada raise its target for the overnight interest rate (the very short-term money-market rate the Bank targets for monetary policy purposes) to 0.75 percent at its next announcement on July 20, 2010. The Council recommended further increases over the coming year, recommending an overnight rate target of 2.25 percent in July 2011.

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 Communiqué go to www.cdhowe.org

For further information: Kristine Gray - phone: [phone], e-mail: [email protected]