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
3 G/ O0 b% [  ^8 D0 \solidifying 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
& b: t# ^* Q- g9 e" Precovery and are a significant source of uncertainty to the global outlook. Robust demand from
* r1 M, p$ ]( l/ o( 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.
" L0 ?# d& O3 a( B
The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
" j. c. Z0 `/ [  t& X" ithe anticipated rebalancing of demand. While consumption growth remains strong, there are
4 K% m: O6 ?" _7 T* Z$ o6 gsigns that household spending is moving more in line with the growth in household incomes.
6 I; o% j: e0 I3 x! \" c, q9 JBusiness investment continues to expand rapidly as companies take advantage of stimulative
( ?% @7 Z5 X+ k$ `: hfinancial conditions and respond to competitive imperatives. There is early evidence of a
2 `* a0 W% I0 c* K2 A* Irecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
$ U9 |" _. Q7 I9 m1 X' O* Z0 _7 ~However, 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
8 P6 B: j1 [  O7 wperformance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
, n+ n8 K5 ]' q# m; g, G( N/ Z) F+ EBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.

% w' P6 i& {" s: @0 C# W8 `) z7 \6 [Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
8 l) F: w/ p) n+ zat 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
* y8 ]( e4 w2 r% S+ N7 N2 per cent inflation target in an environment of significant excess supply in Canada. Any further
- T' Y" j8 ^6 T3 c# t* L" Ureduction in monetary policy stimulus would need to be carefully considered.
. p/ ]! N2 O5 k; `; c4 e, F: {Information note:

2 }9 O, A. A: EThe 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.