C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 5.00 Percent through March, Cut to 3.75 Percent by January of 2025

January 18, 2024 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada maintain its target for the overnight rate, its benchmark policy interest rate, at 5.00 percent at its next announcement on January 24th. The MPC further recommends that the Bank keep the target at 5.00 percent in March, before reducing it to 4.50 percent by July and to 3.75 percent by January of 2025.

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…

C.D. Howe Institute Monetary Policy Council to Bank of Canada: Hold Overnight Rate at 5.00 Percent until January, Cut to 4.00 Percent by End of 2024

November 30, 2023 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada maintain its target for the overnight rate, its benchmark policy interest rate, at 5.00 percent at its next announcement on December 6th. The MPC further recommends that the Bank keep the target at 5.00 percent in January 2024, before reducing it to 4.75 percent by June of 2024 and to 4.00 percent by December of 2024.

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…

Structuring Success: Canada's Competition Act Must Remain Effects-based

The C.D. Howe Institute Competition Policy Council (the Council) met on Friday, October 13, 2023, to debate the calls for bright-line rules and presumptions, and whether such proposals are an appropriate approach to competition law enforcement that would effectively address issues of affordability and lagging productivity in Canada.

The tabling of a Private Member’s Bill on September 18, 2023, by Jagmeet Singh, leader of the New Democratic Party, titled Lowering Prices for Canadians Act1
brought this discussion into scope as it proposes bright-line tests and presumptions specifically in the context of Canada’s merger review laws. A November 16, 2023, Motion in the House has proposed that during its…

November 15, 2023: Domestic Stability Buffer Council Recommends Holding Buffer at 3.5 Percent at Inaugural Meeting

At its inaugural meeting, the C.D. Howe Institute’s Domestic Stability Buffer Council (DSBC) recommended that the Office of the Superintendent of Financial Institutions (OSFI) maintain its Domestic Stability Buffer (DSB) at 3.5 percent at its next setting in December.

The DSBC provides OSFI, industry participants, and key economic policy voices with an independent assessment of the appropriate size of the buffer in pursuit of OSFI’s mandate of contributing to public confidence in the Canadian financial system. The Council consists of Vivian Abdelmessih, Cathy Cranston, Jamey Hubbs, Peter Levitt, Duncan Munn, Mark Zelmer, and Jeremy Kronick who is Chair. Council members make recommendations for OSFI’s upcoming DSB…

C.D. Howe Institute Monetary Policy Council to Bank of Canada: Hold Overnight Rate at 5.00 Percent until Early 2024, Cut to 4.50 Percent by Next October

October 19, 2023 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada maintain its target for the overnight rate, its benchmark policy interest rate, at 5.00 percent on October 25th. The MPC further recommends that the Bank keep the target at 5.00 percent at least until April of 2024, then reduce it to 4.50 percent by October of 2024.

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, though in this instance it was chaired by Jeremy Kronick, the Institute’s Associate Vice President and Director of the Centre on Financial and Monetary Policy…