TORONTO, May 19, 2016 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 0.50 percent at its next announcement on May 25, 2016. Looking ahead, the Council called for the Bank to hold the target at 0.50 percent over the next 12 months.
The MPC provides an independent assessment of 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
For further information: Kristine Gray - phone: 416-865-1904; [email protected].