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
January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
  a; q4 Y9 j/ J  qsolidifying 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
6 n- `8 N; Q6 L/ z8 y  }, Q, lrecovery and are a significant source of uncertainty to the global outlook. Robust demand from
) [( f! x% U* _+ N- temerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.
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/ f7 L) x  J4 f. \2 s; AThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
( ~: S7 R4 f; v( |  Tthe anticipated rebalancing of demand. While consumption growth remains strong, there are
% n4 p# [) I7 }3 b: Z* Vsigns that household spending is moving more in line with the growth in household incomes.
  m7 \9 B7 {( I7 e& B& Q1 _- `Business 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 s, Q) w; U% p7 z2 R& xHowever, 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
- [: ~& z2 a* n; A$ J& P* n: Q, \performance.
4 K/ p4 `7 ^# E- U' Y, x; Y
While global inflationary pressures are rising, inflation in Canada has been consistent with the
# |; Y5 g* E. BBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
6 K/ F- H0 R+ P# Cconsiderable 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
2 per cent inflation target in an environment of significant excess supply in Canada. Any further
reduction in monetary policy stimulus would need to be carefully considered.
Information note:
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( I( d1 y% k4 t- o6 Q9 LThe 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.