 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.
2 m( }& m# X! _3 z x# N( p( U) e$ { s% `$ U
The global economic recovery is proceeding broadly in line with the Bank's projection in its1 B$ n8 x1 y# w# k4 Q" m
January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is A8 d" w; k# j' p3 x+ E- _1 |' Z8 Q ]
solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
- t; }% H- S* L0 y+ O3 T! a8 ochallenges associated with sovereign and bank balance sheets will limit the pace of the European1 B+ w9 U' ?7 A8 }
recovery and are a significant source of uncertainty to the global outlook. Robust demand from+ d* Z* ?% L5 P3 S( b% i3 [
emerging-market economies is driving the underlying strength in commodity prices, which could
" p+ y7 m |; \- Rbe further reinforced temporarily by supply shocks arising from recent geopolitical events.
( m) L. P% \* T
" n/ d, s, H$ y" M1 q" z: lThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
; `$ ]! y# I w. E# Rthe anticipated rebalancing of demand. While consumption growth remains strong, there are$ O# p+ ^! S# Z: C* d0 t
signs that household spending is moving more in line with the growth in household incomes.% N9 E: i; [) V) N! s G
Business investment continues to expand rapidly as companies take advantage of stimulative
4 ^+ Y: }, Z; I0 ^6 bfinancial conditions and respond to competitive imperatives. There is early evidence of a' _7 |! ^0 L6 z7 ]' X7 Z _9 a- x, a
recovery in net exports, supported by stronger U.S. activity and global demand for commodities.% [; }. N+ J7 c& m) `4 [! U% x
However, the export sector continues to face considerable challenges from the cumulative effects$ n0 C6 N4 y& R' `
of the persistent strength in the Canadian dollar and Canada's poor relative productivity
- M- h9 I$ _. z9 @- Iperformance.7 {/ I' }6 Z& G0 F
4 s9 c% R0 [4 }
While global inflationary pressures are rising, inflation in Canada has been consistent with the
. B m6 C) n$ ~1 r/ x8 q. o1 kBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the2 h" A+ f' C% n9 e1 ]9 X3 g$ X+ t
considerable slack in the economy.
% N1 \7 y+ S. L& @8 y
& h0 n4 K2 @& t5 |* K bReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate6 k9 X' K% O, g9 P$ R5 x: n
at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the0 @8 X. f$ V; Z! s
2 per cent inflation target in an environment of significant excess supply in Canada. Any further
8 m c) D4 ^3 w E% |/ Mreduction in monetary policy stimulus would need to be carefully considered.3 g& ]3 l4 v! Y& k) A5 e7 U. k
Information note:& T6 L; V& t" n4 `; b! W
# a# \( {# l# D9 D
The next scheduled date for announcing the overnight rate target is 12 April 2011. |
|