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
/ h$ X+ X$ c# M8 r& K6 e: C. gsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
8 N. L4 d+ ^. r$ P& Y: b0 {challenges associated with sovereign and bank balance sheets will limit the pace of the European
recovery 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
be further reinforced temporarily by supply shocks arising from recent geopolitical events.
7 a. T  v" [% a1 a
: f+ |! y' P+ K4 iThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
the anticipated rebalancing of demand. While consumption growth remains strong, there are
% u( |0 h! W7 l5 v. msigns that household spending is moving more in line with the growth in household incomes.
% p$ l. o+ w1 [2 e9 m* GBusiness investment continues to expand rapidly as companies take advantage of stimulative
! p$ x% j& h/ y0 h# V3 gfinancial conditions and respond to competitive imperatives. There is early evidence of a
6 J. K2 C" m! c2 p& g6 o1 p8 jrecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
4 c* a. p  L& DHowever, 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.
4 ~( i2 H& L- f
$ y. O% w5 Q0 [While global inflationary pressures are rising, inflation in Canada has been consistent with the
  t/ e3 H  I+ x  e) e% ^! `' oBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.

, S8 r. H- Z+ |+ o- ~+ HReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
2 t* q! a% P- u; o1 tat 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
' J# N  T5 l8 i& j' ~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.