TORONTO, Aug. 31, 2017 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) called for the Bank of Canada to keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 0.75 percent at its next announcement on September 6, 2017. The MPC called for the Bank to hike to 1.00 percent at the following announcement in October, with a further increase to 1.25 percent by September 2018.
The MPC provides an independent assessment of the 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.
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SOURCE C.D. Howe Institute
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