C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.50 for the next year

TORONTO, May 19, 2016 /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 0.50 percent at its next announcement on May 25, 2016.  Looking ahead, the Council called for the Bank to hold the target at 0.50 percent over the next 12 months.

The MPC provides an independent assessment of 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.

To read the announcement go to: https://www.cdhowe.org/council-reports/cd-howe-institute-monetary-policy-council-calls-bank-canada-hold-overnight-rate-050-next-year

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. It is Canada's trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review. It is considered by many to be Canada's most influential think tank.

As a registered Canadian Charity, the Institute relies on donations to conduct its work. We hope this communication demonstrates our value as a public policy research institute and that you will consider donating to the Institute as a result. Please click here to donate via Canada Helps.  

SOURCE C.D. Howe Institute

For further information: Kristine Gray - phone: 416-865-1904; kgray@cdhowe.org.

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