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.

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
* n8 H8 ]1 X- y* I  b* y% B; fsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
8 u* }$ a/ p, ochallenges 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
3 L" ]. d0 p4 H5 N! K: lbe 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
9 l: {% k+ [% v( @1 B3 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.
) l' r8 @3 ~2 Y5 S7 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
9 }$ L8 p/ K& g. krecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
5 ^( S$ e: ?! I* L! {! r$ j& CHowever, 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
performance.
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& b/ E: `$ i/ U: HWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
: G; C4 U; b- W& s$ q. S7 a$ @Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
$ _- f' K: v1 ]: }, \2 Qconsiderable slack in the economy.
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- k7 ^; y% _( {6 \4 v1 zReflecting 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
; I: w; U* g: j/ B9 I" h3 _0 [0 dreduction in monetary policy stimulus would need to be carefully considered.
Information note:

2 e& ~9 i7 m1 IThe 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.