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Bank of Canada increases overnight rate target to 1/2 per cent and re-establishes normal functioning of the overnight market
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; S7 f! M, r) [) J) M+ dOTTAWA - The Bank of Canada today announced that it is raising its target for the overnight
6 N! Z6 R: i" P' k# j1 R- |' Irate by one-quarter of one percentage point to 1/2 per cent. The Bank Rate is correspondingly! I2 U9 D+ c X5 [8 u( k' l0 `
raised to 3/4 per cent and the deposit rate is kept at 1/4 per cent, thus re-establishing the normal- P6 [5 Q8 @" j0 h: J
operating band of 50 basis points for the overnight rate.
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The global economic recovery is proceeding but is increasingly uneven across countries, with Q" A. r; b, Q' J
strong momentum in emerging market economies, some consolidation of the recovery in the
9 m* T, @ ^6 n+ z; W; rUnited States, Japan and other industrialized economies, and the possibility of renewed weakness5 B) ~5 s0 V* @) a
in Europe. The required rebalancing of global growth has not yet materialized.$ T" m, c9 A$ D: h: Y
In most advanced economies, the recovery remains heavily dependent on monetary and fiscal
- l: J0 C7 e) U" R' ]stimulus. In general, broad forces of household, bank, and sovereign deleveraging will add to the ~* ]& }1 @9 x1 _' @8 z
variability, and temper the pace, of global growth. Recent tensions in Europe are likely to result" X. A2 z. G$ s* l
in higher borrowing costs and more rapid tightening of fiscal policy in some countries - an
8 k' I: y, x, t$ U, cimportant downside risk identified in the April Monetary Policy Report (MPR). Thus far, the
8 D# z' @* x: Aspillover into Canada from events in Europe has been limited to a modest fall in commodity' y7 B: N0 |5 P/ H/ W
prices and some tightening of financial conditions.
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Activity in Canada is unfolding largely as expected. The economy grew by a robust 6.1 per cent
' h( \! Y5 T8 F4 O, B. bin the first quarter, led by housing and consumer spending. Employment growth has resumed. X5 E- a7 O* V$ L! V' T
Going forward, household spending is expected to decelerate to a pace more consistent with" X X) I ?/ T- s3 Z+ C( V
income growth. The anticipated pickup in business investment will be important for a more
4 F) J9 P) t* X1 Mbalanced recovery.
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CPI inflation has been in line with the Bank's April projections. The outlook for inflation reflects1 o) q5 A" @( m" w+ k+ y; N
the combined influences of strong domestic demand, slowing wage growth, and overall excess! x$ n9 r7 _& a# r% G9 {
supply.) _- y* ?$ R: D: o& b
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In this context, the Bank has decided to raise the target for the overnight rate to 1/2 per cent and; ~( |( P, |3 B- ^0 ?
to re-establish the normal functioning of the overnight market. This decision still leaves considerable
3 ^9 |- d) o }6 W6 ]% X4 K" emonetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the
) i8 k8 N) q% _& z Nsignificant excess supply in Canada, the strength of domestic spending, and the uneven global recovery.$ n5 i: A4 R+ p7 V3 ?* Y" f
& L7 v/ O- [* K% I' pGiven the considerable uncertainty surrounding the outlook, any further reduction of monetary9 q3 V1 X0 F( c! f( e
stimulus would have to be weighed carefully against domestic and global economic% o$ a' Z$ V- }; s5 j& z
developments.' z* a0 C1 N" h7 I7 w$ j+ s9 [/ \
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Information note:
( O' f5 X5 y: x! { `* t- kThe next scheduled date for announcing the overnight rate target is 20 July 2010. A full update
$ x5 s b3 D$ ]. W% D! tof the Bank's outlook for the economy and inflation, including risks to the projection, will be9 l+ T+ e0 R& w+ |- V' l; b
published in the MPR on 22 July 2010. |
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发表于 2010-6-1 07:58
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楼主
发表于 2010-6-1 10:11
发表于 2010-6-1 12:38
小罚一下， 请您做一碗正宗的麻辣面犒劳一下版主游侠同志！
