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.

' I  W' p4 E$ m) l, fThe global economic recovery is proceeding broadly in line with the Bank's projection in its
/ ^1 v& y3 Q0 A1 S3 R5 V8 ~- k+ VJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
1 u' E0 T' s! i3 ~challenges associated with sovereign and bank balance sheets will limit the pace of the European
/ t6 [/ b% y& _: }recovery and are a significant source of uncertainty to the global outlook. Robust demand from
( i2 v2 u, ?& H' s* l. N9 m/ I8 iemerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.

# S( i4 R5 _/ w3 ]The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
. R: c- h! p4 f# V0 u# mthe 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.
7 x! z; [: z/ V, y: S; c5 _; B/ ]9 ABusiness investment continues to expand rapidly as companies take advantage of stimulative
8 C. ~, B4 g# z: a4 r6 X5 D3 Kfinancial conditions and respond to competitive imperatives. There is early evidence of a
, ^4 J' I7 Q" Z9 m: }) p/ T' ^6 [recovery in net exports, supported by stronger U.S. activity and global demand for commodities.
4 ^" [2 b9 e# j$ s) 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.

1 L4 T! s2 e$ u4 EWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
  P% X3 |# l0 ]! O$ f' {0 }Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.
/ B" T# r& g; I, x# B) U
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
1 {' t& H' W3 M) }' l. y2 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:

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.