C.D. Howe Institute Monetary Policy Council: Bank of Canada Should Hold Overnight Rate at 0.50 Percent for Six Months, Hike to 0.75 Percent by October 2017

October 13, 2016 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today 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 0.50 percent at its next announcement on October 19, 2016.  Looking ahead, the Council said the Bank should hold the target at 0.50 percent over the next six months, and called for an increase to 0.75 percent in a year’s time.

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…

C.D. Howe Institute Monetary Policy Council Says Bank of Canada Should Hold Overnight Rate at 0.50 Percent for Next Six Months, Hike to 0.75 Percent by September 2017

September 1, 2016 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today 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 0.50 percent at its next announcement on September 7, 2016.  Looking ahead, the Council said the Bank should hold the target at 0.50 percent over the next six months, but called for an increase to 0.75 percent in a year’s time.

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…

Taking the Economic Pulse: An Improved Tool to Help Track Economic Cycles in Canada

A new business cycle measurement developed by a C.D. Howe analyst provides further evidence that there was no recession in 2015, according to a new Institute report. In “Taking the Economic Pulse: An Improved Tool to Help Track Economic Cycles in Canada,” author Jeremy Kronick fills a crucial data gap with a new and improved […]

Andrew Parkin – Canada: A Country Like No Other

From: Andrew Parkin To: Public Policy Analysts and Advocates for “National Plans” Date: July 14, 2016 Re: Canada – A country like no other Policy-making in Canada unfolds in a context that is unique among industrialized countries, owing to the distinctive structure of our federation. This uniqueness is captured by OECD Regions at a Glance […]

C.D. Howe Institute Monetary Policy Council Says Bank of Canada Should Hold Overnight Rate at 0.50 for Next 12 Months

July 7, 2016 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today 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 0.50 percent at its next announcement on July 13, 2016.  Looking ahead, the Council said the Bank should hold the target at 0.50 percent over the next 12 months.

The MPC provides an independent assessment of 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…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.50 for the next year

May 19, 2016 — 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 it targets for monetary policy purposes, at 0.50 percent at its next announcement on May 25, 2016.  Looking ahead, the Council called for the Bank to hold the target at 0.50 percent over the next 12 months.

The MPC provides an independent assessment of 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…

The long-term growth challenge- Many questions, few easy answers: Globe and Mail Op-Ed

The Canadian economy faces serious growth headwinds over the next few decades, and policy makers across the country should be thinking hard about how to improve growth. Many policy options will likely be considered, but finance ministers will soon find that there are no quick fixes. Economic growth is a complex process.

The broadest measure of average income is per capita gross domestic product (GDP), which is simply the overall national income divided by the number of people. Over long periods of time, this measure grows for two reasons: improvements in labour productivity and increases in the labour force participation rate.

Since 1970, per capita GDP in Canada has increased at an average rate of 1.3 per cent a year –…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.50 through 2016; Looks for 0.75 Percent by April 2017

April 7, 2016 — 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 it targets for monetary policy purposes, at 0.50 percent at its next announcement on April 13, 2016.  Looking ahead, the Council called for the Bank to hold the target at 0.50 percent through the end of the year, raising it to 0.75 percent by April 2017.

The MPC provides an independent assessment of 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…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.50 Percent until mid-2016; Hike to 0.75 Percent by next November

November 26, 2015 — 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 it targets for monetary policy purposes, at 0.50 percent at its next announcement on December 2, 2015. Looking ahead, the Council called for the Bank to hold the target at 0.50 percent until May 2016 and hike it to 0.75 percent by November 2016.

The MPC provides an independent assessment of the monetary stance appropriate for the Bank of Canada as it pursues its 2 percent inflation target. William Robson, the Institute’s President and Chief Executive Officer, chairs the Council.

Council members make recommendations for…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.50 Percent through Mid-Year; Hike to 0.75 Percent by October 2016

October 15, 2015 — 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 it targets for monetary policy purposes, at 0.50 percent at its next announcement on October 21, 2015. Looking ahead, the Council called for the Bank to hold the target at 0.50 percent through to April of 2016 and hike it to 0.75 percent by October of 2016.

The MPC provides an independent assessment of the monetary stance appropriate for the Bank of Canada as it pursues its 2 percent inflation target. William Robson, the Institute’s President and Chief Executive Officer, chairs the Council.

Council members make…

Drop in loonie poses threat to productivity: Globe and Mail Op-Ed

By Craig Alexander

The precipitous decline in the Canadian dollar has come as a shock to many businesses. Only a few years ago, forecasters were telling them to come to terms with a currency at par for the foreseeable future. Now, the Canadian dollar is worth close to 75 cents (U.S.) and could fall further. This is welcome news for the near-term economic outlook – the benefits to exporters will exceed the cost to importers, boosting economic growth. This demonstrates the value of Canada’s flexible exchange rate regime that acts as a buffer when economic shocks occur, such as the recent tumble in commodity prices. However, there is a potential dark side to a sustained low-valued loonie, as it can erode productivity and dampen…

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