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
! o. l* b7 c' \1 Ysolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
! M6 x, F, V8 X8 z2 @! kchallenges associated with sovereign and bank balance sheets will limit the pace of the European
! H. w0 J( |' S( s& irecovery and are a significant source of uncertainty to the global outlook. Robust demand from
9 i8 `2 m4 [, K7 r' D+ n3 g' ]# yemerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.

) L8 C8 m# H; j- f2 eThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
! }( y2 @3 H7 m, V& Ithe anticipated rebalancing of demand. While consumption growth remains strong, there are
! a8 Y) w0 J* g- M9 U: W. T0 P" Tsigns that household spending is moving more in line with the growth in household incomes.
" j# w% s7 q3 y! F* k+ mBusiness investment continues to expand rapidly as companies take advantage of stimulative
financial 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.
% A5 j$ P* c; DHowever, the export sector continues to face considerable challenges from the cumulative effects
- N. }% J5 P8 p- t. b5 {* w0 Oof the persistent strength in the Canadian dollar and Canada's poor relative productivity
performance.
, W' ?$ Y* r: k1 h' V$ l
While global inflationary pressures are rising, inflation in Canada has been consistent with the
* S# D! }0 c9 sBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.
: Q+ W. _* h, \  }/ U% R
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
2 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.
  h* i7 f* b1 Y2 E  iInformation note:
# ]9 X1 \. S9 P8 k
$ g( K  w5 g. T$ _2 |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.