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.
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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
* t' A1 k) P- `# gsolidifying 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
recovery and are a significant source of uncertainty to the global outlook. Robust demand from
5 W! [/ B0 d0 D  @& e% remerging-market economies is driving the underlying strength in commodity prices, which could
- V- ?9 U, m8 fbe further reinforced temporarily by supply shocks arising from recent geopolitical events.
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% F1 h3 Q- U( ^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
  G  t( J) r: B1 G+ s# ]signs that household spending is moving more in line with the growth in household incomes.
9 k) `: ^5 S4 f# i" p9 [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
7 `& X/ U: x( I' Lrecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
  |6 B1 ]2 S# c5 \. aHowever, the export sector continues to face considerable challenges from the cumulative effects
5 g+ }1 P4 q9 ^' `1 y, x1 n* b  tof the persistent strength in the Canadian dollar and Canada's poor relative productivity
performance.
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% _5 u% z$ A& FWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
' t/ M0 P8 z0 j. Q# R% D1 K% RBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
% v; r! F) r! ?' I( Lconsiderable slack in the economy.

. y; O# g, R# j, G4 N5 PReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
- K% r. A( I/ I2 v' x% G2 Rat 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
* Z# g+ H: P2 d( g4 K" b& I7 mreduction in monetary policy stimulus would need to be carefully considered.
- o4 V5 j. z# r* N* j/ s5 i& CInformation 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.