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.
% ]# o4 Z# @! ^( U" d- Z
& Z: v, F1 p! H4 @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
8 U, ^# I6 |: Gsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
0 T8 \, O- Y! Q8 X: Ochallenges associated with sovereign and bank balance sheets will limit the pace of the European
9 f9 p: @5 v7 g  Q7 zrecovery 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
. \. `' u; m* ?! G. m3 wbe further reinforced temporarily by supply shocks arising from recent geopolitical events.

The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
: g+ _+ K3 v, ~# Y9 cthe anticipated rebalancing of demand. While consumption growth remains strong, there are
/ Z9 L0 M6 w/ D: u  rsigns that household spending is moving more in line with the growth in household incomes.
. I% ~$ w& u/ p/ C. FBusiness investment continues to expand rapidly as companies take advantage of stimulative
5 e8 I4 l, x' ^& s" B( efinancial 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
. A9 ]0 z" y0 ~; H% ?9 mof the persistent strength in the Canadian dollar and Canada's poor relative productivity
1 p6 D: `8 P/ Lperformance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
4 b/ v8 P+ y& q4 OBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.

# h, m' ]- O+ K" n0 q. q, l5 fReflecting 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 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.
Information note:
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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.