C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Raise Overnight Rate to 3.25 Percent

September 1, 2022 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada raise its target for the overnight rate, its benchmark policy interest rate, by 75 basis points to 3.25 percent on September 7th, and maintain the current pace of reduction in its holdings of Government of Canada bonds.

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 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…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Raise Overnight Rate to 2.25 Percent Next Week and 3.25 Percent by 2023

July 7, 2022 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada raise its target for the overnight rate, its benchmark policy interest rate, by 75 basis points to 2.25 percent on July 13th. The MPC recommends further increases over the coming year: to 2.75 percent in September and 3.25 percent by January 2023. Its call for the overnight rate in a year’s time was also 3.25 percent. The MPC also recommends that the Bank maintain the current pace of reduction in its holdings of Government of Canada bonds between now and September.

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…

Ottawa Moving with Unnecessary Haste on Competition Law Reform

June 9 – The government missed key opportunities to consult with various constituencies affected by proposed amendments to the Competition Act in the Budget Implementation Act. While agreeing with Minister Champagne regarding the critical role of the Competition Act in promoting dynamic and fair markets, the Competition Policy Council does not think that such consequential changes to the legislation intended to improve its operation can, or should be, done without input from stakeholders. In all cases, the Council is of the view that greater consultation before implementing the changes would, and still could, improve them to the betterment of Canadians and the Canadian economy. This is the consensus of the C.D. Howe Institute…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Raise Overnight Rate to 1.50 Percent Next Week and 2.00 Percent in July, and Sell Bonds

May 26, 2022 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada raise its target for the overnight rate, its benchmark policy interest rate, by 50 basis points to 1.50 percent on June 1st. The MPC recommends further increases over the coming year: to 2.00 percent in July, and 2.50 by December. It also recommends that the Bank accelerate its planned reduction in its holdings of Government of Canada bonds.

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 CEO, chairs the Council.

Council members make recommendations for the Bank of Canada’s upcoming interest-rate…

Rushed Amendments Could Have Unintended Consequences: C.D. Howe Institute Competition Policy Council

April 28, 2022 – The C.D. Howe Institute Competition Policy Council supports the Minister of Innovation, Science and Industry’s recent statement that “competition in the economy is the driving force behind innovation, efficiency and adaptability.”

However, in “Bring on the Competition: Reforming Canada’s Competition Act,” the Council’s 22nd report, it cautions that rushed amendments to the Competition Act without careful consideration and thoughtful debate could have unintended consequences for these forces in the Canadian economy. “Even perceived shortcomings in the Competition Act may not easily be addressed without unintended consequences,” according to the Council’s latest Communiqué.

Notably…