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.

, p3 k- ?$ U. T' c+ jThe global economic recovery is proceeding broadly in line with the Bank's projection in its
6 _8 v8 G8 A4 O1 d4 L% }4 fJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
1 s/ E, Y! C$ h  b( f9 ~solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
4 k) Z0 w2 g. dchallenges 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
4 t2 X8 s  L4 @' I3 V- F6 H  k- remerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.
4 n) C6 l/ p( C# r1 P+ ]9 W
The 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
, g( u& R- |2 z: p7 Ssigns that household spending is moving more in line with the growth in household incomes.
5 u- t/ K5 V' y' CBusiness investment continues to expand rapidly as companies take advantage of stimulative
financial conditions and respond to competitive imperatives. There is early evidence of a
1 o5 w5 V' z3 R, ]0 z7 q  ~recovery in net exports, supported by stronger U.S. activity and global demand for commodities.
4 o/ F% g% l7 `) J3 h1 s+ Q1 y% O. cHowever, the export sector continues to face considerable challenges from the cumulative effects
- K% r7 v- d( I4 `0 bof the persistent strength in the Canadian dollar and Canada's poor relative productivity
8 V; b: H4 {7 R6 K! d" Uperformance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
. w- I9 U6 C2 x8 {9 \/ ]Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
8 ^+ D. V/ M, Y4 ~3 @3 |considerable slack in the economy.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
) E% Z7 X  M& l* A. p% K3 P5 Aat 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
: R8 T8 K" P3 G4 h: {+ l. breduction in monetary policy stimulus would need to be carefully considered.
Information note:
# W+ P/ M" F: A( _- n/ _
% B" W( J$ |+ Y. b: bThe 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.