TORONTO, Jan. 12, 2012 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) today recommended that the Bank of Canada maintain its target for
the overnight rate, the very short-term interest rate the Bank targets
for monetary policy purposes, at 1.00 percent at its next announcement
on January 17, 2012. Weak economic indicators in Canada and abroad, and
the possibility of a dramatic deterioration in Europe's fiscal and
financial situation, led the MPC to call for the Bank's overnight rate
to stay at 1.00 percent past mid-year, with the median call for the
rate in a year's time being 1.25 percent.
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 full report go to: www.cdhowe.org
SOURCE C.D. Howe Institute
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