Taking the Economic Pulse: An Improved Tool to Help Track Economic Cycles in Canada
A new business cycle measurement developed by a C.D. Howe analyst provides further evidence that there was no recession in 2015, according to a new Institute report. In “Taking the Economic Pulse: An Improved Tool to Help Track Economic Cycles in Canada,” author Jeremy Kronick fills a crucial data gap with a new and improved […] Steve Ambler – Don’t Squander The Bank’s Credibility By Increasing The Inflation Target
From: Steve Ambler To: Governor Stephen Poloz Date: July 20, 2016 Re: Don’t squander the Bank’s credibility by increasing the inflation target. Negotiations with the Government of Canada over this year’s renewal of the inflation control agreement are likely at an advanced stage. However, I would like to add a few thoughts on one of […] C.D. Howe Institute Monetary Policy Council Says Bank of Canada Should Hold Overnight Rate at 0.50 for Next 12 Months
July 7, 2016 — The C.D. Howe Institute’s Monetary Policy Council (MPC) today called for the Bank of Canada to keep its target for the overnight rate, the very short-term interest rate it targets for monetary policy purposes, at 0.50 percent at its next announcement on July 13, 2016. Looking ahead, the Council said the Bank should hold the target at 0.50 percent over the next 12 months.
The MPC provides an independent assessment of monetary stance consistent with the Bank of Canada’s 2 percent inflation target. William Robson, the Institute’s President and CEO, chairs the Council.
Council members make recommendations for the Bank of Canada’s upcoming interest-rate announcement, the subsequent…
In Britain or Ottawa, things get hairy when central bankers get political – Financial Post Op-Ed
The question as to what central bank “independence” means has arisen once more and not just in Canada. Bank of England Governor Mark Carney stepped into the Brexit debate and was accused of political interference. In India, the head of the central bank has decided not to seek re-appointment, with political controversy surrounding his tenure. When Bank of Canada Governor Stephen Poloz recently made comments relating to the federal budget he sparked debate over the bank’s independence.
This is far from a new issue. As early as the 1940s, Graham Towers, then the Bank of Canada’s governor, was accused of pandering to the government by keeping interest rates low, and other governors have skated near political controversy from time to…
Toward the Next Renewal of the Inflation-Control Agreement: Questions Facing the Bank of Canada
The Bank of Canada should not squander its hard-won credibility by increasing its target rate of inflation, says a new report from the C.D. Howe Institute. In “Toward the Next Renewal of the Inflation-Control Agreement: Questions Facing the Bank of Canada,” author Steve Ambler concludes that Steven Poloz should stay with 2 percent in the new […] Jeremy Kronick – Brexit: The First Real Test of Low Interest Rates
From: Jeremy Kronick To: Central Bankers Date: June 24, 2016 Re: Brexit – The First Real Test of Low Interest Rates The Great Recession of 2008/2009 caused central banks to slash interest rates to historic lows. In light of the cross-border financial contagion happening at the time these were entirely appropriate decisions. However, in the […]John Crow – Interest Rates and Targets in the Budget
From: John Crow To: The Minister of Finance and his budget builders Date: June 2, 2016 Re: Interest Rates and Targets in the Budget You followed the longstanding budget convention of broad economic and financial assumptions explicitly based on private sector forecasts. This helps to focus attention on tax and expenditure actions rather than on the […]Doug Porter – Canadian Macro Policy: The Mix is In
From: Doug Porter To: Policymakers and Concerned Canadians Date: May 30, 2016 Re: Canadian Macro Policy: The Mix is In The world has witnessed an important shift in policy prescriptions recently. After years of urging fiscal restraint on deeply indebted governments following the financial crisis, as well as ever-easier monetary policy, the conventional wisdom appears to have undergone a […]Craig Alexander on BNN: Bank of Canada decision expected to factor in Fort Mac, Fed
C.D. Howe Institute Monetary Policy Council Calls for Bank of Canada to Hold Overnight Rate at 0.50 for the next year
May 19, 2016 — 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 0.50 percent at its next announcement on May 25, 2016. Looking ahead, the Council called for the Bank to hold the target at 0.50 percent over the next 12 months.
The MPC provides an independent assessment of monetary stance consistent with the Bank of Canada’s 2 percent inflation target. William Robson, the Institute’s President and 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 Calls for Bank of Canada to Hold Overnight Rate at 0.50 through 2016; Looks for 0.75 Percent by April 2017
April 7, 2016 — 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 0.50 percent at its next announcement on April 13, 2016. Looking ahead, the Council called for the Bank to hold the target at 0.50 percent through the end of the year, raising it to 0.75 percent by April 2017.
The MPC provides an independent assessment of monetary stance consistent with the Bank of Canada’s 2 percent inflation target. William Robson, the Institute’s President and CEO, chairs the Council.
Council members make recommendations for the Bank of Canada’s upcoming…
Mounting Evidence: Findings from Natural Experiments in Inflation Targeting
International evidence shows the wide economic benefits of inflation targeting, says a ground-breaking C.D. Howe Institute report. In “Mounting Evidence: Findings from Natural Experiments in Inflation Targeting,” author Michael Parkin shows how the evidence broadly supports the merits of inflation targeting as a monetary policy tool for central banks that have clear independence.