How does the Bank of Canada decide the appropriate target for the overnight rate?

Question

Accepted Answer

A, B, and C occur.

Answer

The market for the overnight loans determines the target overnight rate.

Answer

The reasons for the forecast are discussed and the Governing Council fids an appropriate target for the overnight rate.

Answer

The Bank economists give the Governor and Governing Council a baseline forecast of the overnight rate.

Answer

The Bank economists collect data and use a model of the economy.

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