TORONTO, May 18, 2017 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) said the Bank of Canada should keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 0.50 percent at its next announcement on May 24, 2017. Looking ahead, the Council said the Bank should hold the target at 0.50 percent over the next six months, and hike to 1.00 percent by May of 2018.
The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada's 2 percent inflation target. William Robson, the Institute's President and CEO, chairs the Council.
Council members make recommendations for the Bank of Canada's upcoming interest-rate announcement, the subsequent announcement, and the announcements six months and one year ahead. The Council's formal recommendation for each announcement is the median vote of the members attending the meeting. (In the event that the median vote is not a multiple of 25 basis points, as happened this time for the target six months out, the formal recommendation is rounded in the direction of no change.)
To read the announcement, go to: https://www.cdhowe.org/council-reports/bank-canada-should-hold-overnight-rate-050-percent-next-week-hike-100-percent-may-2018-cd-howe
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SOURCE C.D. Howe Institute
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