Bank of Canada Should Hold Overnight Rate at 1.25 Percent Next Week, Hike to 2.00 in a Year's Time: C.D. Howe Institute Monetary Policy Council

TORONTO, May 24, 2018 /CNW/ - The C.D. Howe Institute's Monetary Policy Council (MPC) called for the Bank of Canada to hold its target for the overnight rate, its benchmark policy interest rate, at 1.25 percent at its next announcement on May 30, 2018. Looking further ahead, the Council called for a hike in the target to 1.50 percent in July, with further increases raising it to 2.00 percent by May of 2019.

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-125-percent-next-week-hike-200-year%E2%80%99s-time-says-cd-howe

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SOURCE C.D. Howe Institute