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.
" m+ Z- l' `! N7 R
1 f0 i8 Z# u) F) |- XThe global economic recovery is proceeding broadly in line with the Bank's projection in its
" t5 ~& Z* ^! c4 N* Y5 xJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
" M- a8 @, u8 U: s$ ~0 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
# V# W6 [! K# n$ Y: Wemerging-market economies is driving the underlying strength in commodity prices, which could
* S8 V% U7 x3 c6 M0 v7 P( F* b8 lbe further reinforced temporarily by supply shocks arising from recent geopolitical events.
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7 Z7 z" }' ~$ _4 C* l3 P* Q+ YThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
+ {8 r/ ^2 A7 Y0 [- s+ Athe anticipated rebalancing of demand. While consumption growth remains strong, there are
3 V  X, v& Z+ W% a8 m+ [signs that household spending is moving more in line with the growth in household incomes.
; B2 A. [* `' m' `4 uBusiness investment continues to expand rapidly as companies take advantage of stimulative
8 V9 ?7 F; N0 b$ l3 m% {financial conditions and respond to competitive imperatives. There is early evidence of a
% M3 V( I7 ]1 |. R$ b' y! q) Z3 e  K+ X. _recovery in net exports, supported by stronger U.S. activity and global demand for commodities.
% X3 X* c! \# W: C1 ?- H# pHowever, the export sector continues to face considerable challenges from the cumulative effects
, a1 A/ }" Z6 _- j+ aof the persistent strength in the Canadian dollar and Canada's poor relative productivity
! p0 Q; w! z$ P  ~performance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
( r% `4 R/ T5 _2 s- N4 Z* j( {considerable 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
( I4 K: E' F% I$ X" g0 b2 per cent inflation target in an environment of significant excess supply in Canada. Any further
/ |' P% H' o6 G2 ^reduction in monetary policy stimulus would need to be carefully considered.
Information 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.