 鲜花( 65)  鸡蛋( 0)
|
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.
5 }3 a3 h9 R4 l) s! q- z- U. Y5 J: O; d# J% D# E
The global economic recovery is proceeding broadly in line with the Bank's projection in its4 r; M, L+ F7 X5 U
January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
5 C" X# b- n$ D/ T+ Ssolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing. `2 M4 i2 A& P
challenges associated with sovereign and bank balance sheets will limit the pace of the European, d, p7 L# a3 f1 q: H; K: x+ Z4 D
recovery and are a significant source of uncertainty to the global outlook. Robust demand from
7 P5 H2 B, j' `! L0 Vemerging-market economies is driving the underlying strength in commodity prices, which could5 ]1 a* I# n. y4 B7 V# T! [* p. A
be further reinforced temporarily by supply shocks arising from recent geopolitical events.! ?; Y# H2 p+ w5 B7 Y
) f' O6 W' s* z6 eThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
3 j8 `" I* V+ ]the anticipated rebalancing of demand. While consumption growth remains strong, there are
7 `5 }& w0 B6 C% V% w0 o5 Fsigns that household spending is moving more in line with the growth in household incomes.9 O- ], H1 q$ ] O: u) Y* B* R
Business investment continues to expand rapidly as companies take advantage of stimulative
- [- u# }2 z3 z) y. `$ Ufinancial conditions and respond to competitive imperatives. There is early evidence of a. m& m: n8 K( g2 q* r: [
recovery in net exports, supported by stronger U.S. activity and global demand for commodities.; C9 A+ A& s9 E2 c9 ^
However, the export sector continues to face considerable challenges from the cumulative effects' C, w' B9 V8 s8 B- [
of the persistent strength in the Canadian dollar and Canada's poor relative productivity0 p$ M* X0 L) H: {# R
performance.1 B! \- A+ u% Y) I
) S; K/ q9 [# v+ z3 m) t
While global inflationary pressures are rising, inflation in Canada has been consistent with the& F0 G' V5 q& f2 }; i. i p5 \
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
+ A) R% T7 u* F( f/ ~5 @- f5 }considerable slack in the economy.6 u1 h4 i3 U) M* ~
R9 o* @& k- K
Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
5 S; B! N/ [4 s' ^6 Z6 Y5 rat 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
) I- B4 } S8 v2 per cent inflation target in an environment of significant excess supply in Canada. Any further
/ B3 E3 T- |3 _. |. Y( t7 Hreduction in monetary policy stimulus would need to be carefully considered.6 c; o# p; y0 q# e7 b
Information note:& y. e: c( @% }8 ]
$ t0 L% E# ~5 f! h
The next scheduled date for announcing the overnight rate target is 12 April 2011. |
|