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
January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
  D4 a$ v# ~; x: z, p4 Z# }2 isolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
" l! z: q& o8 M, k1 G3 Mchallenges associated with sovereign and bank balance sheets will limit the pace of the European
. h) g$ v* @" L. D0 [/ j% Y; A9 A' ^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
be further reinforced temporarily by supply shocks arising from recent geopolitical events.
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' M& w' q% I3 L' y+ h* UThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
! f$ v4 ^! f3 O. a3 P, z0 A! Q, Z* Mthe anticipated rebalancing of demand. While consumption growth remains strong, there are
; _0 B( [2 V) j% d8 m5 J6 C) f5 fsigns that household spending is moving more in line with the growth in household incomes.
7 v: ^& f! ~% \; Y+ W8 {" ~4 H+ vBusiness investment continues to expand rapidly as companies take advantage of stimulative
financial conditions and respond to competitive imperatives. There is early evidence of a
: z7 W( d9 W9 C4 H' @* q6 brecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
' t1 P4 ^0 F6 aHowever, 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
/ b2 H6 z* Z: u+ Q/ Vperformance.

0 L5 r* h( d$ W5 lWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
* B3 R1 D" W. \% O7 S" W, e: E, vconsiderable slack in the economy.
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Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
4 [& a0 @* W& O$ u$ c  i9 E7 yat 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:

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.