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

Nov 28, 2013, 14:00 ET from C.D. Howe Institute

TORONTO, Nov. 28, 2013 /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 the Bank targets for monetary policy purposes, at 1.00 percent at its next announcement on December 4, 2013. The Council further called for the Bank to hold the target at 1.00 through to December 2014.

The MPC is a panel sponsored by the C.D. Howe Institute to provide an independent assessment of the monetary stance appropriate for the Bank of Canada as it aims for its 2 percent inflation target. William Robson, the Institute's President and Chief Executive Officer, chaired the Council's 82nd meeting.

MPC 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 recommendations for each announcement are the median votes of the members.

For the full report go to: http://www.cdhowe.org/mpc-recommendations-nov-2013/23649

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SOURCE C.D. Howe Institute