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
2 g; b4 g; B/ y7 b8 H! ~* ~January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
+ d# d3 E) J* w8 Nchallenges 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
# }) _+ b$ q, h# Hemerging-market economies is driving the underlying strength in commodity prices, which could
3 u/ i: n8 `& L( G* j2 Kbe further reinforced temporarily by supply shocks arising from recent geopolitical events.

The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
3 T. G7 o; s3 x! B. I$ Z1 Hthe 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.
7 f* }/ `1 a3 ?3 Y2 |/ _3 hBusiness investment continues to expand rapidly as companies take advantage of stimulative
financial conditions and respond to competitive imperatives. There is early evidence of a
" J3 {" ]# o% r9 m5 D+ ?" f6 P: lrecovery 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
1 B- A6 N" x! T& r/ \' Jof the persistent strength in the Canadian dollar and Canada's poor relative productivity
3 J# A' ]( R* A* Vperformance.
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6 H3 c, H' A6 i. Y5 c5 n% _: l6 xWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
0 @" d" G6 Y# @9 F# f& |; kconsiderable slack in the economy.

  c* T9 O1 A+ X  E" k9 I3 n6 ^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
) b7 w0 L+ ~% V" d, h7 ^& V9 M3 l2 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.
; v& b5 |; b) aInformation 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.