TORONTO, Jan. 14 /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 January 19, 2010. (The overnight rate is a very short-term money-market rate that the central bank targets for monetary policy purposes.) The Council further recommended that the Bank keep the target at 0.25 percent at the next announcement in March, in keeping with the Bank's conditional commitment to do so until mid-year. The MPC's recommendation for July, the first 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 January 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, the Institute's President and CEO, chairs the Council.
For the recommendation go to: www.cdhowe.org
SOURCE C.D. Howe Institute
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