MARCH 1st, 2011 -BANK OF CANADA- NO CHANGE FOR THE OVERNIGHT RATE(ZT)

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OTTAWA - The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.
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& h7 B- L+ T# w! d" \The global economic recovery is proceeding broadly in line with the Bank's projection in its
January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
! R. P- W8 F+ {" Q. Hsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
" @/ z; Y" ^5 r0 c, Wchallenges associated with sovereign and bank balance sheets will limit the pace of the European
recovery and are a significant source of uncertainty to the global outlook. Robust demand from
& n% C: e4 s4 B0 U# [/ Cemerging-market economies is driving the underlying strength in commodity prices, which could
& y0 q& ^5 @. o" Qbe further reinforced temporarily by supply shocks arising from recent geopolitical events.
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The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
6 g: q) e! Q4 Jthe anticipated rebalancing of demand. While consumption growth remains strong, there are
signs that household spending is moving more in line with the growth in household incomes.
* I3 N0 y" o, n5 bBusiness investment continues to expand rapidly as companies take advantage of stimulative
financial conditions and respond to competitive imperatives. There is early evidence of a
recovery in net exports, supported by stronger U.S. activity and global demand for commodities.
However, the export sector continues to face considerable challenges from the cumulative effects
- d& ]* X1 z, hof the persistent strength in the Canadian dollar and Canada's poor relative productivity
" g) ?: c5 |) ], v" Tperformance.
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While global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.

& J/ j/ _9 c7 d" H# YReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
, @* L0 t7 X' F8 ~% Bat 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
2 per cent inflation target in an environment of significant excess supply in Canada. Any further
reduction in monetary policy stimulus would need to be carefully considered.
Information note:

The next scheduled date for announcing the overnight rate target is 12 April 2011.

小黄

It won't be changed for a long time.

web123

but banks will raise mortgage rate, for sure.