C.D. Howe Institute's Monetary Policy Council Urges Bank of Canada to Hold Overnight Rate at 1.00 Percent on September 7, 2011

TORONTO, Sept. 1, 2011 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) today recommended that the Bank of Canada maintain its target for the overnight interest rate, the very short-term money-market rate the Bank targets for monetary policy purposes, at 1.00 percent at its next announcement on September 7, 2011. The Council further recommended holding the target rate at 1.00 percent at the following announcement on October 25, 2011, followed by increases that would take it to 1.25 percent in March 2012 and 1.75 percent in September 2012.

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 announcement go to: www.cdhowe.org

SOURCE C.D. Howe Institute

For further information:

Kristine Gray - phone: 416-865-1904; e-mail: kgray@cdhowe.org.

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