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.

9 l6 b& S$ a) Y3 d7 S9 |9 b2 c6 [The global economic recovery is proceeding broadly in line with the Bank's projection in its
$ f& p" ~5 S3 D4 q0 Q2 yJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
% u. A0 K! }$ echallenges associated with sovereign and bank balance sheets will limit the pace of the European
% i- h' i. O, Srecovery and are a significant source of uncertainty to the global outlook. Robust demand from
# h3 h& v. ]9 M/ h' memerging-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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  t5 [  R& I5 y- f& O: sThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
8 O1 m( r7 C7 {. Y- p: sthe anticipated rebalancing of demand. While consumption growth remains strong, there are
signs that household spending is moving more in line with the growth in household incomes.
2 C% I2 _; t+ ~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
# Z& e" a6 K2 B. P, Y2 Rrecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
/ x# B# t  ]3 [! M- u; [0 nHowever, 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
performance.
% q, r) u# t3 j, a5 C
While global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.
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Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
: I8 W( j3 U0 E  R! L$ k% E7 \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.
' D: s0 v8 L  j9 ^  `Information note:
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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.