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
; o6 I, D5 K2 ]solidifying 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
! }3 d8 D) ~/ E! arecovery and are a significant source of uncertainty to the global outlook. Robust demand from
1 F; p6 c$ p8 s7 vemerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.

- A, J2 a0 m7 ~) h/ i* ~The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
, ?- S$ j+ y. o. qthe anticipated rebalancing of demand. While consumption growth remains strong, there are
9 S7 b$ f0 f6 Y. B1 O; Vsigns that household spending is moving more in line with the growth in household incomes.
  A. p2 i5 Y" N" L( J5 A1 ~; TBusiness 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.
However, the export sector continues to face considerable challenges from the cumulative effects
2 ]3 |  ~+ S4 P3 O; h) l8 ^' Lof the persistent strength in the Canadian dollar and Canada's poor relative productivity
performance.
+ w3 ], p" p' X: c0 m
% E, ~; M) j$ d% i  l- z# lWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
' z8 q* u2 q7 a( u" qBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.
* l4 w( Q4 E3 u0 P& O8 t
" ~4 k3 w) i. d1 B3 [Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
, x+ v! N/ V3 e6 q1 Z. Tat 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
  x: a3 N3 Y+ U; [reduction in monetary policy stimulus would need to be carefully considered.
Information note:
0 E& }$ u: {( t  @' R4 d: \
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.