C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Raise Overnight Rate to 1.00 Percent Next Week and 2.25 Percent in a Year’s Time, and Shrink Bond Holdings

April 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 50 basis points to 1.00 percent on April 13th. The MPC recommends further increases over the coming year: to at least 1.25 percent in June, 2.00 by October, and 2.25 percent by April 2023. It also recommends that the Bank reduce its holdings of Government of Canada bonds between now and its May overnight-rate target announcement.

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…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Raise Overnight Rate to 0.50 Percent Next Week on Way to 1.75 Percent in a Year’s Time, and Shrink Bond Holdings

February 24, 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, to 0.50 percent on March 2nd, with further increases to 0.75 percent in April, 1.25 percent by September, and 1.75 percent this time next year. It also recommends that the Bank reduce its holdings of Government of Canada bonds between now and its April overnight-rate target announcement.

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…

C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Raise Overnight Rate, Shrink Bond Holdings

January 20, 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, to 0.50 percent at its next announcement on January 26th. The Council recommended further increases over the coming year, with the target reaching 1.50 percent by January of 2023. It also recommends that the Bank reduce its holdings of Government of Canada bonds prior to its next overnight rate target announcement in March.

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…

Pharmaceutical Supply Chain Sustainability

On September 29, 2021, the C.D. Howe Institute invited trusted experts in both the public and private sectors to participate in a Special Policy Seminar on the sustainability and resiliency of Canada’s pharmaceutical supply chains and other issues surrounding domestic manufacturing.

The general consensus among participants found that improving emergency preparedness, increasing domestic manufacturing capacity, and investment in the monitoring of drug supply inventories would all be beneficial for supply chain resiliency. Beyond this, the participants agreed there is a role for government to provide leadership, oversight, and investment in vaccine development and manufacturing, while also promoting public policy that contributes…

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…