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.

" i0 Q* ^, J5 w, U" @* GThe global economic recovery is proceeding broadly in line with the Bank's projection in its
5 r% ~+ a5 A- ^$ [1 l; v& dJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
$ C5 Z2 r( B: T7 ]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
, o$ |" ]; S6 m, f+ Urecovery and are a significant source of uncertainty to the global outlook. Robust demand from
+ S) Q* d7 Y5 J8 [% j3 Nemerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.

- E/ ]' _, u+ U8 f* H+ sThe 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
% @, w2 a* C5 `& a' Bsigns that household spending is moving more in line with the growth in household incomes.
Business investment continues to expand rapidly as companies take advantage of stimulative
; A5 @+ c/ n8 D* k2 l$ n% `/ Gfinancial 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
- B4 g' f& g: E8 F' w4 p7 T. rof the persistent strength in the Canadian dollar and Canada's poor relative productivity
/ u% ]8 B' i2 n8 _8 V# J, j( G3 `& |performance.

8 X1 g0 n: p3 M# }/ oWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.
' U& q, L( Q3 h2 h& }3 ?8 [
: a6 A) j0 U. V1 BReflecting 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
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.
2 x5 h% f0 ?  S  R+ W0 @' ^Information note:
8 p" D& I- T& R( U& i
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.