C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.25 Percent Next Week, Hike to 1.00 Percent Next Year, Shrink Bond Holdings

December 2, 2021 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada keep its target for the overnight rate, its benchmark policy interest rate, at 0.25 percent through next January, before raising it to 0.75 percent by June of 2022, and to 1.00 percent by December of 2022. It also recommends that the Bank reduce its holdings of Government of Canada bonds between now and its next overnight-rate target announcement in January.

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…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate Target at 0.25 Percent Next Week, Hike to 1.00 Percent Next Year, Cut Bond Purchases

October 21, 2021 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada keep its target for the overnight rate, its benchmark policy interest rate, at 0.25 percent through December, before raising it to 0.50 percent by April of 2022, and to 1.00 percent by October of 2022. It also recommends that the Bank reduce its quantitative-easing purchases of Government of Canada bonds from the current pace of $2 billion per week.

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…

Distilled Wisdom: Top Legal and Economic Experts on the Most Needed Competition Reforms

September 9, 2021 – After ten years and over twenty meetings, the C.D. Howe Institute’s Competition Policy Council has summarized the key measures that the next Canadian government should focus on for legislative reform of the Competition Act.

Competition law and policy has recently been elevated to the main stage of the Canadian policy debate. For example, Budget 2021 marked the first major move of the federal government to respond to the added interest in competition law and policy, with an increase in the Competition Bureau’s budget. This attention, including discussion of Competition Act matters at hearings of the House of Commons Standing Committee on Industry, Science and Technology in April 2021, brings opportunity for…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate Target at 0.25 Percent through Fall, Maintain Bond Purchases at $2 Billion per Week

September 2, 2021 – The C.D. Howe Institute’s Monetary Policy Council (MPC) recommends that the Bank of Canada keep its target for the overnight rate, its benchmark policy interest rate, at 0.25 percent through October, before raising it to 0.50 percent by March of 2022, and to 0.75 percent by September of 2022. It also recommends that the Bank maintain its quantitative-easing purchases of Government of Canada bonds at the current pace of $2 billion per week.

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…

C.D. Howe Institute Business Cycle Council Declares an End to the COVID-19 Recession

August 24, 2021 - The C.D. Howe Institute’s Business Cycle Council, Canada’s main arbiter of business cycle dates, has declared an end to the COVID-19 recession.

The Council decided on August 9 to declare an end to the recession that began in March 2020. It judged that the recovery from the recession is now prolonged and sustained enough to declare that the trough of the recession occurred in April 2020, making this the shortest and deepest recession since the Great Depression that began in 1929.

In March and April 2020, there were unprecedented falls in economic activity. April GDP was 17.7 percent below its level in February 2020. The Council declared on May 1, 2020, that Canada entered a recession in the first quarter…