October 16, 2014 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 1.00 percent at its next announcement on October 22, 2014. Looking ahead, the Council called for the Bank to hold the target at 1.00 percent through the spring of 2015, but called for a target of 1.50 a year from now.

Full Communiqué: Communique_Oct16.pdf

Canadians should hold off on declaring a slowdown in government healthcare spending to sustainable growth rates, says a C.D. Howe Institute report released today. In “Bending Canada’s Healthcare Cost Curve: Watch Not What Governments Say, But What They Do,” author William B.P. Robson finds that reports of slower growth in healthcare spending have been repeatedly wrong-footed by chronic budget overshoots. So recent estimates that healthcare spending is no longer growing faster than the economy may also prove optimistic.

August 28, 2014 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 1.00 percent at its next announcement on September 3, 2014. Looking ahead, the Council called for the Bank to hold the target at 1.00 percent through the spring of 2015, but called for a target of 1.50 a year from now.

The Bank of Canada (BoC) should carefully monitor the money supply to better predict inflation and track the effectiveness of its monetary policy, according to a new C.D. Howe Institute report. In “Money Still Matters: How the Bank of Canada Might Better Monitor Inflation,” author Mati Dubrovinsky suggests the BoC should also pay particular attention to the possibility that the public’s inflation expectations will shift below targeted inflation, and should be prepared to adjust policy if and when such a shift occurs.

Business Investment Hits Unprecedented Lows in Quebec and Ontario: C.D. Howe Institute

Toronto, July 17, 2014 – Canada’s performance in business investment per worker relative to its peers is sliding, led by dismal performances in Quebec and Ontario, according to a new C.D. Howe Institute report. In “Capital Needed: Canada Needs More Robust Business Investment,” authors Benjamin Dachis, William B.P. Robson and Nicholas Chesterley find that Canada, after several years of improved performance, is equipping its workers less well than countries like Australia and the US.  

July 10, 2014 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today recommended that the Bank of Canada keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 1.00 percent at its next announcement on July 16, 2014. Looking ahead, the Council called for the Bank to hold the target at 1.00 percent through the rest of 2014, but called for a target of 1.75 by July 2015.