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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& {" ^5 {: z. b# a2 [. O- ~, iThe global economic recovery is proceeding broadly in line with the Bank's projection in its
+ M7 F  O! Q. [$ g" \January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
$ @/ ?# D+ C1 J- Vchallenges 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
1 B4 F0 t$ I5 Y! D) \emerging-market economies is driving the underlying strength in commodity prices, which could
! X- M$ I, Y) u3 wbe further reinforced temporarily by supply shocks arising from recent geopolitical events.
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) `) {5 x+ }$ _3 kThe 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
5 ]5 ?0 y( U" q$ @signs that household spending is moving more in line with the growth in household incomes.
: B3 G  x2 x4 t& Q; D2 ~* k2 \Business investment continues to expand rapidly as companies take advantage of stimulative
: S/ T; O6 ~- ~$ pfinancial 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.
, n" V4 }' S: O0 C2 hHowever, the export sector continues to face considerable challenges from the cumulative effects
; c- d: v! R: G- O8 \of the persistent strength in the Canadian dollar and Canada's poor relative productivity
( @: h$ ^: D0 k6 A* N: K; G: hperformance.
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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
. [! {$ C; [1 {1 u( |considerable slack in the economy.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
6 o2 ]/ H8 s$ O/ ^+ t! ?& m3 D7 Iat 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
/ I  q! R" l. W2 a$ e/ z; N1 \# s2 per cent inflation target in an environment of significant excess supply in Canada. Any further
4 v5 y0 {0 G) }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.