The C.D. Howe Institute believes that the Bank of Canada should keep its target overnight rate at 0.50% at its next announcement on Wednesday, Sept. 9.

The C.D. Howe Institute’s Monetary Policy Council (MPC) has recommended that the Bank of Canada keep its rate at 0.5% and hold it there through to March of 2016, only hiking it to 0.75% in September of 2016.

The C. D. Howe's MPC members make regular recommendations for the Bank of Canada’s upcoming interest-rate announcements, and it is based on the median vote of the members attending the meeting. In this case, the council’s recommendation was unanimous.

"The consensus in favour of no change in the target at the next two settings reflected a balance. Council members generally judged that Canada’s economy is accelerating out of its early-year weakness, and that inflation should return to 2 percent as the drop in oil prices during the second half of 2014 disappears from the year-over-year measures," says the C.D. Howe Institute. "A number of concerns tempered enthusiasm for overnight-rate increases, however, with problems in the world economy and the slowdown in China particularly heading the list."