TORONTO, May 23, 2013 /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 May 29, 2013. The Council further called for the Bank to hold the
target at 1.00 through to May of 2014.
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. Finn Poschmann, the Institute's Vice President, Research, chaired the seventy-eighth
meeting of the Council.
The MPC's formal recommendations are the median votes of members
attending the meeting. Members give their individual recommendations
for the Bank of Canada's upcoming interest-rate announcement, the
subsequent announcement, and the announcements six months and one year
ahead. On this occasion, nine of the 11 voting members called for a
1.00 percent target next week, while two called for the Bank to lower
the target to 0.75 percent. Members' votes were the same for the
following setting in May. For December 2013, one member raised his
target from 1.00 to 1.25 percent, with other votes unchanged. Two
members called for 1.25 percent by May 2014, and another sought 1.00
For the full report go to: http://www.cdhowe.org/mpc-recommendations-may-2013/21781
SOURCE: C.D. Howe Institute
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