Bank of Canada Should Raise Overnight Rate to 1.50 Percent Next Week, Hike to 2.00 in a Year's Time, Says C.D. Howe Institute Monetary Policy Council

TORONTO, July 5, 2018 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) called for the Bank of Canada to raise its target for the overnight rate, its benchmark policy interest rate, to 1.50 percent at its next announcement on July 11, 2018. Looking further ahead, the Council called for the Bank to hold the target at 1.50 percent in September, with further increases raising it to 2.00 percent by July of 2019.

The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada's 2 percent inflation target. Jeremy Kronick, an Associate Director, Research at the C.D. Howe Institute chaired the 120^th Council's meeting. 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-raise-overnight-rate-150-percent-next-week-hike-200-year%E2%80%99s-time-says-cd-howe

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada's most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.

As a registered Canadian Charity, the Institute relies on donations to conduct its work. We hope this communication demonstrates our value as a public policy research institute and that you will consider donating to the Institute as a result. Please click here to donate via Canada Helps.  

SOURCE C.D. Howe Institute