September 3, 2020 – 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 at least until September of 2021. Most MPC members also recommended that the Bank of Canada continue its quantitative easing program through the period until its next overnight rate announcement on October 28th. 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. The Council’s principal recommendations are about the overnight rate target. Members make recommendations for the Bank of Canada...

August 20, 2020 – Canada should provide additional supports for businesses facing the costs of digitizing operations due to the pandemic, says a new report from the C.D. Howe Institute. The report from the Crisis Working Group on Business Continuity and Trade also emphasized a need to reduce barriers to interprovincial trade and mobility, accelerate private sector capital spending, and clarify confusion around Canada’s foreign investment regime. The group of industry experts and economists, co-chaired by Dwight Duncan, Senior Strategic Advisor at McMillan LLP and former Ontario Minister of Finance; and Jeanette Patell, Vice-President of Government Affairs and Policy for GE Canada, held its final meetings on June 16 and July 14, 2020...

July 9, 2020 – 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 until at least July of 2021. 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 recommendation for each announcement is the median vote of members attending the meeting. The eight members of...

June 23, 2020 – Ottawa should use the Canada Emergency Response Benefit’s eight-week extension to update its Employment Insurance administrative architecture and roll out a training benefit program, says the C.D. Howe Institute’s Crisis Working Group on Household Income and Credit Support. At their recent meeting, working group members discussed the proposed amendments to the Canada Emergency Response Benefit (CERB) Act. The group also identified the need for training support benefits for CERB recipients, management of uncertainties to improve decision-making by households, and increased coordination with provincial governments to ease the transition back to work.  The group recommends: Removing the penalty of...

June 22, 2020 – Governments and regulators should set out guidelines to allow for creativity in encouraging investments, such as a “sandbox” where innovative approaches can be tested, according to a new C.D. Howe Institute working group report. The C.D. Howe Institute Crisis Working Group on Monetary and Financial Measures argues such measures would increase the confidence of lenders and investors when engaging with businesses. The group, co-chaired by David Dodge, former Governor of the Bank of Canada, and Mark Zelmer, former Deputy Superintendent, OSFI, also tackled issues such as the underwhelming uptake of certain support measures offered by governments, uncertainty on future policy responses to the pandemic, strategies to...