Bank of Canada Should Hold Overnight Rate at 1.00 Percent Next Week; Hike to 1.50 Percent by December 2018: C.D. Howe Institute Monetary Policy Council

TORONTO, Nov. 30, 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 1.00 percent at its next announcement on December 6, 2017, and keep it there at its January 2018 announcement. By May of 2018, however, the MPC called for the Bank to hike to 1.25 percent, with a further increase to 1.50 percent by the end of 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.

To read the announcement, go to: https://www.cdhowe.org/council-reports/bank-canada-should-hold-overnight-rate-100-percent-next-week-hike-150-percent-december-2018-cd-howe

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SOURCE C.D. Howe Institute