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.

' B, k, s! v( VThe 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
$ v# q% b: Z: Q5 ?1 ~. Zsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
! r3 q) m4 I) [' n) f% bchallenges associated with sovereign and bank balance sheets will limit the pace of the European
1 h6 v2 I( v# {$ T9 L8 Brecovery and are a significant source of uncertainty to the global outlook. Robust demand from
+ d+ {1 V. j( W( H, remerging-market economies is driving the underlying strength in commodity prices, which could
! H4 U6 ^! O% \be further reinforced temporarily by supply shocks arising from recent geopolitical events.
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The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
1 I- @# B" m9 p# F& N2 O- M5 j3 cthe anticipated rebalancing of demand. While consumption growth remains strong, there are
signs that household spending is moving more in line with the growth in household incomes.
3 E$ h, a, o, [Business investment continues to expand rapidly as companies take advantage of stimulative
: D% w- P+ ], ~3 U5 Lfinancial conditions and respond to competitive imperatives. There is early evidence of a
  E9 L) ]* ?# F: |+ xrecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
! p( x1 |# q' a  E9 ~However, 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
: O% p3 U  @$ i! k# g/ v# C4 b- ?" qperformance.
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While global inflationary pressures are rising, inflation in Canada has been consistent with the
$ d2 R- T2 R9 H; e5 {  a# TBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
: L' ^5 r  c# L) j8 k6 x. _" Zconsiderable slack in the economy.
$ m5 h) e1 L$ l8 `: [  U! c, D0 h
! f5 N$ W$ J& o( P; dReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
" O: G2 K& C, u) tat 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
0 ~+ l+ P/ v1 Y1 J2 per cent inflation target in an environment of significant excess supply in Canada. Any further
7 ]8 n' I; A4 z* A7 P# _: E) Xreduction in monetary policy stimulus would need to be carefully considered.
Information note:
' r& J3 J# o% t' p7 a
; `. d4 @: {9 f8 J4 N/ eThe 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.