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
+ l- X* E# x1 k( |3 B1 Tsolidifying 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
emerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.

+ n/ e/ D: l8 B; ]0 vThe 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
% b7 n/ ~5 [- y" osigns that household spending is moving more in line with the growth in household incomes.
6 O) T* ^2 t! n  e1 ]2 [/ `Business investment continues to expand rapidly as companies take advantage of stimulative
4 A% B0 D6 e/ Xfinancial 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.
However, the export sector continues to face considerable challenges from the cumulative effects
9 u1 c* Y. ?$ R5 Fof the persistent strength in the Canadian dollar and Canada's poor relative productivity
9 t9 M0 G4 }8 G3 a) Y% N' [performance.

# E+ g1 c; ~; E. AWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
$ d9 K+ G3 g! H4 x- BBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.

! u/ B5 \) p4 w6 TReflecting 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 I6 ~8 V4 M8 P! i2 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.
9 v8 s; r& x2 z0 M  Q. S/ ?4 }Information 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.