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.

2 a7 F7 F% [8 p; JThe global economic recovery is proceeding broadly in line with the Bank's projection in its
/ f8 o0 t$ V8 b9 OJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
8 o- u) X- p, Q+ V8 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
( ~1 C1 h2 ^( A" [$ oemerging-market economies is driving the underlying strength in commodity prices, which could
6 Q2 m0 ]2 Y% S* T! C& z5 v8 bbe further reinforced temporarily by supply shocks arising from recent geopolitical events.
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: O# t9 }6 u" }( [2 ]The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
0 _* z9 M: t% X  vthe anticipated rebalancing of demand. While consumption growth remains strong, there are
0 P# `$ H) V0 f0 ?  V& W- [signs that household spending is moving more in line with the growth in household incomes.
' t$ i) I/ g3 v) 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
recovery in net exports, supported by stronger U.S. activity and global demand for commodities.
5 i% @6 S. e; t1 x8 v& E+ @9 s  MHowever, 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.
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While global inflationary pressures are rising, inflation in Canada has been consistent with the
, ?5 y; {2 k  n" t; XBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.

: T. F/ [0 ^( m8 N! J5 ?! ~6 HReflecting 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
7 e" F" d3 f6 h, C2 per cent inflation target in an environment of significant excess supply in Canada. Any further
: E( h' {# p! d% Jreduction in monetary policy stimulus would need to be carefully considered.
Information note:
7 |% T4 P3 f7 ^% |+ o7 V+ {% q  ?
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.