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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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
5 q6 ]# E! ?9 G5 T. Hsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
challenges associated with sovereign and bank balance sheets will limit the pace of the European
" ^# Y3 |8 [" g7 Qrecovery and are a significant source of uncertainty to the global outlook. Robust demand from
1 Y$ Q& O: W1 l/ b) Qemerging-market economies is driving the underlying strength in commodity prices, which could
! V& t# m6 n# jbe further reinforced temporarily by supply shocks arising from recent geopolitical events.
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# G7 M- c" ~2 V' w, ^' Q" wThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
/ D7 k* Z* Z3 P# d* k: k; \8 \the 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.
: [/ |  A  S9 V. n6 B% X6 JBusiness investment continues to expand rapidly as companies take advantage of stimulative
1 e9 [  ~  M1 B# Pfinancial 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.
! E9 a3 d: c" Q- u; H) o/ bHowever, the export sector continues to face considerable challenges from the cumulative effects
9 s5 T- R* I2 F5 Dof the persistent strength in the Canadian dollar and Canada's poor relative productivity
performance.
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" h' v# _! I  ?. `) P- NWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
6 _/ Y- W6 @5 ^. N, d1 qconsiderable slack in the economy.

2 v" W5 e) P% N5 _9 uReflecting 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
& m! n% G. Z5 Z* K2 per cent inflation target in an environment of significant excess supply in Canada. Any further
, w$ [9 R# r4 g" X4 C0 q- Breduction in monetary policy stimulus would need to be carefully considered.
# v* S6 Y3 D) C1 BInformation note:
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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.