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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The global economic recovery is proceeding broadly in line with the Bank's projection in its
6 @# w. O. n/ p( i+ Q6 CJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
( _/ [& F2 N# Q, esolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
7 Q* r1 f! N9 Z9 bchallenges associated with sovereign and bank balance sheets will limit the pace of the European
( @0 m6 ?0 H2 i4 f* n4 zrecovery and are a significant source of uncertainty to the global outlook. Robust demand from
' }9 N  h$ l8 o1 ^. R) O' Aemerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.
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7 d% Y+ b% J+ g3 \  ^* mThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
the anticipated rebalancing of demand. While consumption growth remains strong, there are
" X9 T" B7 ?3 fsigns that household spending is moving more in line with the growth in household incomes.
) q6 W. m" N# J  R/ o: OBusiness investment continues to expand rapidly as companies take advantage of stimulative
financial conditions and respond to competitive imperatives. There is early evidence of a
5 [7 @( |8 N7 p% Xrecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
# e: W  \+ T" w" n0 O; F( sHowever, the export sector continues to face considerable challenges from the cumulative effects
of the persistent strength in the Canadian dollar and Canada's poor relative productivity
3 @' ]2 g4 B( J; ]performance.

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.

7 L% j5 {1 c! W9 K  {- T2 p. bReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
4 b+ G! \+ k3 G) x2 P2 D2 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:
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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.