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
. g% K+ o3 x9 d! v' c* A7 SJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
: I; e# ~$ Q* X0 ?6 Esolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
# [6 p# {$ e; J% Wchallenges associated with sovereign and bank balance sheets will limit the pace of the European
, x. E+ s' ?2 }0 W, |, F1 f% n+ g% Jrecovery and are a significant source of uncertainty to the global outlook. Robust demand from
0 D0 {  n$ i: P, d, n1 @8 Iemerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.
! r* k/ I) f% \: ?! f1 T  E
$ c# p, E  G' n6 n& LThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
/ W# Q) ~% G6 S" v: d% Q" {the anticipated rebalancing of demand. While consumption growth remains strong, there are
0 W3 G0 F# B/ msigns that household spending is moving more in line with the growth in household incomes.
7 N$ {+ p/ n2 e8 q% z# F& mBusiness investment continues to expand rapidly as companies take advantage of stimulative
financial conditions and respond to competitive imperatives. There is early evidence of a
. d* o3 T0 P- k& F/ c$ G1 b) krecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
( G' Z# h$ F* |4 j. kHowever, the export sector continues to face considerable challenges from the cumulative effects
! Q) b- Y* S( V7 Aof 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
" T) a8 Y6 w1 w5 w2 J( s9 LBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.

3 r7 ]! d% p# u1 T8 f: lReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
2 v$ g9 S7 N- G0 o3 |' U; p. g2 Bat 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:

9 P: {1 b3 i; Q% N( Z' w( qThe 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.