C.D. Howe Institute's Monetary Policy Council Calls for Bank of Canada to
Maintain Overnight Rate at 0.25 Percent, With Increase to 1.00 Percent in

TORONTO, Dec. 3 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) (http://www.cdhowe.org/display.cfm?page=monetarySynopsis) today recommended that the Bank of Canada hold its target for the overnight interest rate at 0.25 percent at its next announcement on December 8, 2009. The Council further recommended that the Bank keep the target at 0.25 percent at the Bank's subsequent announcement in January, in keeping with the Bank of Canada's conditional commitment to do so into 2010, and raise it thereafter, with the group's median call being for a target of 1.00 percent in the second half of 2010. The overnight rate is a very short-term money-market rate that the central bank targets for monetary policy purposes.

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), the Institute's President and CEO, chairs the Council.

For the full recommendation go to: www.cdhowe.org

SOURCE C.D. Howe Institute

For further information: For further information: Kristine Gray - phone: (416) 865-1904; e-mail: kgray@cdhowe.org

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890