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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8 w/ q( x8 X/ B- j  ?The global economic recovery is proceeding broadly in line with the Bank's projection in its
2 _9 ?  n% a' B0 v* Z* D% ?. @January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
6 a9 w% ]- j- ^! gsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
challenges 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
emerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.

) e% c: x5 O$ \9 F; RThe 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
+ v: q$ E9 N8 m, `8 \& Jsigns that household spending is moving more in line with the growth in household incomes.
9 b. L1 s5 p, h% ~' i0 N7 l5 xBusiness 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.
+ c  j) m% e; @' p# WHowever, the export sector continues to face considerable challenges from the cumulative effects
! }( e& D& U# z- dof the persistent strength in the Canadian dollar and Canada's poor relative productivity
performance.

1 L$ }( H/ X- @5 Q; E& KWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
  X9 v: e7 p" v& n1 L2 S9 hBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.
; U: t( d9 i0 N3 Q  X" t% @* Z- c
$ {+ y  v2 N. iReflecting 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
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:
* I% h8 b  k) K7 P5 v) Y: W
0 O! z% N4 M. KThe 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.