TORONTO, Feb. 25 /CNW/ - The C.D. Howe Institute's Monetary Policy Council(http://www.cdhowe.org/display.cfm?page=monetarySynopsis) (MPC) today recommended that the Bank of Canada hold its target for the overnight interest rate (the very short-term money-market rate that the Bank targets for monetary policy purposes) at 0.25 percent at its next announcement on March 2, 2010. The Council further recommended keeping the target at 0.25 percent at the Bank's next announcement in April, consistent with its conditional commitment to do so until mid-year. The MPC's recommendation for September, the second announcement date after the Bank's conditional commitment expires, was for a target of 0.75 percent. Looking one year ahead, the Council's recommendation was for a target of 2.00 percent in March 2011.
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 (http://www.cdhowe.org/display.cfm?page=WilliamB.P.%20Robson) Robson, the Institute's President and CEO, chairs the Council.
For the full report go to: www.cdhowe.org
SOURCE C.D. Howe Institute
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