TORONTO, April 7 /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 1.25 percent at its next
announcement on April 12, 2011. The Council further recommended raising
the target rate to 1.50 percent at the following announcement on May
31, 2011, followed by increases that would take it to 2.00 percent in
October 2011 and 2.50 percent in April 2012.
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 go to www.cdhowe.org.
SOURCE C.D. Howe Institute
For further information:
Kristine Gray: 416-865-1904