 鲜花( 65)  鸡蛋( 0)
|
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.
' d2 L) K4 J1 Z. q Q3 D
% e& }. v! q. kThe global economic recovery is proceeding broadly in line with the Bank's projection in its/ l( [( J- H7 ~7 n) }" k; |; ?
January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is, V2 q4 d2 M9 |+ U* `9 @
solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
( j& l% p0 I. K! M) i/ fchallenges associated with sovereign and bank balance sheets will limit the pace of the European
5 h* v& h2 ^9 I e5 nrecovery and are a significant source of uncertainty to the global outlook. Robust demand from4 p8 X3 J a Y+ d) {
emerging-market economies is driving the underlying strength in commodity prices, which could8 P% a- G. x- O7 L
be further reinforced temporarily by supply shocks arising from recent geopolitical events.; X/ L# v4 I" Q. S
' `: _$ c* ~# rThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
, ~+ e8 i! h2 l ~2 Vthe anticipated rebalancing of demand. While consumption growth remains strong, there are4 x/ D O# U, f) U2 G
signs that household spending is moving more in line with the growth in household incomes.5 O! H* P% {' v% J5 r ^
Business investment continues to expand rapidly as companies take advantage of stimulative2 e* ?$ E& S. h2 s. Q" u
financial conditions and respond to competitive imperatives. There is early evidence of a
V5 k" ~0 n) H0 Frecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
& I1 k/ E7 }3 I5 r, |- xHowever, the export sector continues to face considerable challenges from the cumulative effects/ q- f" V/ c# r0 k0 l
of the persistent strength in the Canadian dollar and Canada's poor relative productivity- ]" a. b; l) W# s5 G- k4 ~5 U, N
performance.
4 {# `' b+ Q3 ^+ R" N7 H, d% }1 V% I0 ^
While global inflationary pressures are rising, inflation in Canada has been consistent with the" W1 z6 t6 {' B8 {9 v
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
0 P# _0 p2 {( B- iconsiderable slack in the economy.4 |) m) q( |% k% s" ]
. a' W/ Y! I q# I3 BReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
/ z2 V1 h' w) @at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the; g( P! L/ Q5 _- I
2 per cent inflation target in an environment of significant excess supply in Canada. Any further# l. L* q: R# H% z: ^# K
reduction in monetary policy stimulus would need to be carefully considered.
, E0 O: ?% b0 A# }9 V3 x3 n1 RInformation note:
8 f) G, W( o1 x9 k/ I8 y H" C# z4 F$ J/ c. @; g
The next scheduled date for announcing the overnight rate target is 12 April 2011. |
|