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.

" f1 X+ c; S0 k1 D. KThe global economic recovery is proceeding broadly in line with the Bank's projection in its
+ a5 g3 B+ l- R' F7 WJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
0 e# c6 G+ Z3 b1 o! osolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
% f; p' i, W/ i8 k: S" C2 }: Z' Zchallenges associated with sovereign and bank balance sheets will limit the pace of the European
' U1 D; ~  h' x, P* `; p/ j8 lrecovery 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
7 T5 _" }" Z7 Z9 b4 o/ l  Gbe further reinforced temporarily by supply shocks arising from recent geopolitical events.

+ r- I- ^+ E- q" X( Q* 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
3 I( s0 |& l5 v' ?; wsigns that household spending is moving more in line with the growth in household incomes.
Business investment continues to expand rapidly as companies take advantage of stimulative
; J$ s7 U2 G: z  ffinancial 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.
" K: r" h/ o# N& a9 I8 XHowever, the export sector continues to face considerable challenges from the cumulative effects
0 D7 x& Y' r, H- Q1 @5 w& aof the persistent strength in the Canadian dollar and Canada's poor relative productivity
2 e9 Y7 w  z7 `4 J* X8 x) x% Hperformance.
+ `" g  r" N& X& `) L. y
While global inflationary pressures are rising, inflation in Canada has been consistent with the
' g3 E& I0 @6 T  p& MBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.
  D+ ?! S! q/ D; l) v& k. s( C
Reflecting 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
$ p) `2 F% ^% A! o1 x2 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.
5 g* s- U: w3 w2 N$ w, BInformation 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.