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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. h; s1 Y4 O1 ?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
; L( ]+ E' p+ Zsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
6 S& g) c+ R5 T4 x) z! u6 C3 bchallenges 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.

0 j% ]) @4 c; d3 I+ B2 rThe 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
! e7 c/ H1 }5 zsigns that household spending is moving more in line with the growth in household incomes.
5 y4 r' Y& h$ g, ^0 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
recovery in net exports, supported by stronger U.S. activity and global demand for commodities.
2 a" A' H; \7 }3 mHowever, 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.
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% I, \9 J# w0 k/ X% p8 k0 ], {While global inflationary pressures are rising, inflation in Canada has been consistent with the
% z7 V3 E6 F$ _; @Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
/ ?  c8 `3 U- B$ d# s1 Q; c$ Zconsiderable slack in the economy.

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
" c, y0 K: `' [6 n  G+ H" Z% J2 per cent inflation target in an environment of significant excess supply in Canada. Any further
  u, e) w8 r6 B% F% f5 xreduction in monetary policy stimulus would need to be carefully considered.
Information note:
4 J) _6 ]( [6 J1 ?% O
" ?! J, V( B0 I( X8 rThe 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.