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.

The global economic recovery is proceeding broadly in line with the Bank's projection in its
% o' r4 f8 d1 Q& X& nJanuary Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
; A5 j% b: [* Qsolidifying 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
6 m  t+ h9 J' F, {  i3 N6 Wemerging-market economies is driving the underlying strength in commodity prices, which could
: m; Y) |; f, _be further reinforced temporarily by supply shocks arising from recent geopolitical events.

: m6 _, f$ O5 h- W+ s) XThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
the anticipated rebalancing of demand. While consumption growth remains strong, there are
2 W7 w" [0 `# N0 O& N. H& }signs that household spending is moving more in line with the growth in household incomes.
) d" M: c. @$ }# EBusiness 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.
However, the export sector continues to face considerable challenges from the cumulative effects
5 @8 L) `! t$ oof the persistent strength in the Canadian dollar and Canada's poor relative productivity
performance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
0 s& v  u7 \' Z$ w& `Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.

: a5 O7 W/ s+ l) L9 s& gReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
" p3 H8 N: `6 ~9 h; Jat 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
( F' O9 [: c  v2 f9 H( y4 Mreduction in monetary policy stimulus would need to be carefully considered.
Information note:

/ w) A& k! q% y- P1 `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.