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.
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1 h7 m; B/ N8 s3 w6 i) ^The global economic recovery is proceeding broadly in line with the Bank's projection in its
/ l( H1 Y! s. {  S9 \3 `* T0 h7 kJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
) n5 E+ N$ k+ M4 g2 A" @challenges associated with sovereign and bank balance sheets will limit the pace of the European
& u2 w6 d0 \' n6 frecovery 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
8 k$ L& A: \2 A, C1 Y5 B' Gbe 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
& V  K) h2 D8 e1 N5 Cthe 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.
6 s4 [4 r) @4 O# O' uBusiness 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.
However, the export sector continues to face considerable challenges from the cumulative effects
' S+ D% X& `8 a6 l& e* }8 ^of the persistent strength in the Canadian dollar and Canada's poor relative productivity
  I( w1 D" V! K( [3 ?9 Wperformance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
! a( ~) G# d& q2 Y& p" wconsiderable slack in the economy.
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Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
: l! s3 R5 O; y1 `  k9 g. q3 {; Uat 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.
Information note:
* @3 D. [7 Y) M# j
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.