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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5 T% F6 [, a* u: HThe 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
9 E$ F9 L* |2 D9 Xsolidifying 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
recovery and are a significant source of uncertainty to the global outlook. Robust demand from
! k# ^; B# @% n; ?7 q- x1 L2 gemerging-market economies is driving the underlying strength in commodity prices, which could
% f) s- R; G3 D  N  f2 ~5 zbe further reinforced temporarily by supply shocks arising from recent geopolitical events.

1 o* q% w8 d. rThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
1 ?/ n% N" q* M" a0 o% y% V! ~( ^* jthe 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.
* H+ h4 Q; O' c9 ?) vBusiness investment continues to expand rapidly as companies take advantage of stimulative
financial conditions and respond to competitive imperatives. There is early evidence of a
& Z. H& n# p% T# qrecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
5 n& T5 D( [7 }! T* r' nHowever, the export sector continues to face considerable challenges from the cumulative effects
( ^, l9 r( S) Q! T5 u$ t) yof the persistent strength in the Canadian dollar and Canada's poor relative productivity
( j8 H! r* x1 B6 \0 E. R) o8 s2 sperformance.
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While global inflationary pressures are rising, inflation in Canada has been consistent with the
6 B( \4 {% O- z* y: QBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
7 X2 F, Y, x' W1 N0 S) Q: V3 bconsiderable slack in the economy.
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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
5 O( Q: I4 K% K1 R/ y( h7 V! ^# X2 per cent inflation target in an environment of significant excess supply in Canada. Any further
4 Q; r0 p; Y: vreduction in monetary policy stimulus would need to be carefully considered.
* k/ t. e, e/ q- v. LInformation note:

5 d- [& O3 y' b0 w/ bThe 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.