The C.D. Howe Institute’s Monetary Policy Council (MPC) on Thursday urged The Bank of Canada to raise its target for the overnight rate to 1.25% at its next announcement on Jan. 17.

While the MPC called for the target to stay at 1.25% at the March announcement, it also called for a target of 1.50% by July, and 1.75% in a year’s time.

The MPC provides an independent assessment of the monetary stance consistent with the Bank of Canada’s 2% inflation target. 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.