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
! P( A9 r1 b2 t1 v9 E. s5 [; ^" CJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
- x5 P; D& b) O: fsolidifying 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.
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The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
7 u  T; L6 O+ H( D3 h: a; b3 p! dthe 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.
$ n1 F7 ~: J' V  OBusiness investment continues to expand rapidly as companies take advantage of stimulative
# \3 e: s+ _2 ~, jfinancial conditions and respond to competitive imperatives. There is early evidence of a
2 a$ q) f' [2 i' D# Srecovery 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
$ L" _# w( ~  u6 k  O* pof the persistent strength in the Canadian dollar and Canada's poor relative productivity
performance.
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% Q  g' [# q/ ^3 s) X( _1 y5 `While global inflationary pressures are rising, inflation in Canada has been consistent with the
: z* i6 s5 _) ABank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
4 H  }+ E  B9 ^, M! tconsiderable slack in the economy.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
; t2 a: s) y" L% i/ ]( ]; S8 b2 P3 Sat 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
( _9 g# B% K( v6 n  R2 per cent inflation target in an environment of significant excess supply in Canada. Any further
- y  }- @0 T8 preduction in monetary policy stimulus would need to be carefully considered.
  W  M7 a; Q( c/ @Information note:
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, C2 N3 Z$ J7 |# c! B/ ^1 pThe 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.