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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! V. A; P* ?5 O6 rThe 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
( O; }, M& }; N& m# ysolidifying 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
5 m) U: \2 |2 j' s8 R$ ]1 D8 [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
+ X0 D" a) z8 A9 v1 r+ F, Ebe further reinforced temporarily by supply shocks arising from recent geopolitical events.
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9 \8 @$ F+ I- [: t/ d- |The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
+ A! d9 P6 i9 @; g) u! N1 Hthe anticipated rebalancing of demand. While consumption growth remains strong, there are
  |6 k' Y1 e$ z- M% Rsigns that household spending is moving more in line with the growth in household incomes.
( w# v' s4 d# i3 rBusiness investment continues to expand rapidly as companies take advantage of stimulative
financial 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.
$ ?! O4 q  f" D9 ?6 t# W3 J; h/ hHowever, 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
  t( Z7 l: G1 x, e, C$ a& Hperformance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
6 x% S* ?: y5 ^, cconsiderable slack in the economy.
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. e8 D. c: x7 w2 f0 ], x& ~+ nReflecting 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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3 J* C" |; C! {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.