The C.D. Howe Institute’s Monetary Policy Council (MPC) Thursday recommended that the Bank of Canada raise its target for the overnight interest rate to 0.5% at its next announcement on June 1.
The council further recommended raising the target to 0.75% at the BoC’s subsequent announcement in July.
The MPC’s recommendation for December 2010 was for a target of 1.50% and, looking one year ahead, for a target of 2.50% in May 2011.
The MPC is a panel sponsored by the C.D. Howe Institute to provide an independent assessment of the monetary stance most appropriate for the Bank of Canada as it seeks to achieve its 2% inflation target.
On Wednesday, the Organization of Economic Co-operation and Development called on the Bank of Canada to start raising interest rates “without delay”.
IE
Bank of Canada urged to raise key interest rate to 0.5%
IE Staff