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
: a( Y# E8 T6 gJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
) L: }, y; t/ M! E7 h, e7 K  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
5 l* P+ `5 a2 H! q" F; `be further reinforced temporarily by supply shocks arising from recent geopolitical events.

9 u! B; w$ {9 b/ @6 J  xThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
4 e+ K: v4 P% H3 Lthe anticipated rebalancing of demand. While consumption growth remains strong, there are
- _* N- L( ?2 S% @8 V% }( Zsigns that household spending is moving more in line with the growth in household incomes.
) ^8 l5 B! w1 _* u: ]7 ]Business investment continues to expand rapidly as companies take advantage of stimulative
financial conditions and respond to competitive imperatives. There is early evidence of a
' W4 R7 _& i6 }- [* Wrecovery 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
" v- l% n1 }5 A4 x+ v' j1 s9 g' r9 E3 Pof 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
: v2 K1 \- X9 J4 w5 ABank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.
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  k1 X! q, Y2 |% J" K5 Z" J6 jReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
' l" x! X# o2 g2 j2 ~at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
' U& q! v7 D+ v, p2 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:

8 `8 m  N0 P. o4 j% `) WThe 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.