TORONTO, Sept. 8 /CNW/ - The C.D. Howe Institute's Monetary Policy
Council (MPC) today recommended that the Bank of Canada hold its target for
the overnight interest rate at 0.25 percent at its next announcement on
September 10, 2009. The Council further recommended that the Bank keep the
target at 0.25 percent until mid-2010, and looked for a target of 0.75 percent
a year from now. The overnight rate is a very short-term money-market rate
that the central bank targets for monetary policy purposes.
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.
The MPC's next vote will take place on October 15, 2009, prior to the
Bank of Canada's interest rate announcement on October 20, 2009.
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