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.

The global economic recovery is proceeding broadly in line with the Bank's projection in its
3 A. ~' I; M4 e7 l4 g" lJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
1 B3 @, X# z( j5 i" k* O9 Kchallenges 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
4 ]! B5 u7 ~- O, d2 K  q. [2 u& demerging-market economies is driving the underlying strength in commodity prices, which could
8 i9 A; J  ?7 v! P/ Z8 C3 ^be further reinforced temporarily by supply shocks arising from recent geopolitical events.
  B+ I5 M9 }% ]& S, F, L3 E* h
The 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
3 s' w: V6 D2 Csigns 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
, w, h% f: V  s0 |" \8 x% A* Yfinancial conditions and respond to competitive imperatives. There is early evidence of a
1 M" X8 w+ }& ]8 Orecovery 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
" V3 n# I- t+ q& i: Q5 \of the persistent strength in the Canadian dollar and Canada's poor relative productivity
performance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
/ d; }5 `5 ]$ U3 x& b( G# G  Q; X! m: fBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
2 C7 q4 K; e! Z) k5 @$ Q$ W# Kconsiderable slack in the economy.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
# K: F9 j4 e( Mat 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
' i/ z! h9 I7 [3 `6 ]0 Q4 T* T( j$ a; m: E2 per cent inflation target in an environment of significant excess supply in Canada. Any further
4 Y7 y9 ]- {; N% ^6 K! T, T( _reduction in monetary policy stimulus would need to be carefully considered.
* ]& _! ]+ \0 h& A5 T8 T# XInformation note:

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.