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.

0 U' e6 ^; g  q# ~5 c! MThe 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
9 e+ i: F, Q7 w/ `1 `& H/ g& rsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
5 ^: W9 p! p2 x+ rchallenges associated with sovereign and bank balance sheets will limit the pace of the European
) Q5 E" D+ S, J: F% O$ x. krecovery and are a significant source of uncertainty to the global outlook. Robust demand from
2 k  ^7 K& V8 ?4 c# O9 Yemerging-market economies is driving the underlying strength in commodity prices, which could
. E) Z9 d3 v& v; F2 @be further reinforced temporarily by supply shocks arising from recent geopolitical events.
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: O- b* H( T4 S4 o' _The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
6 X4 e& ~! H! N+ t8 `, Fthe anticipated rebalancing of demand. While consumption growth remains strong, there are
# [9 E/ H# E8 Y4 \  y1 f9 Asigns that household spending is moving more in line with the growth in household incomes.
  o4 Q' u6 N: Y( g4 ], s, c' xBusiness investment continues to expand rapidly as companies take advantage of stimulative
+ z* @  u* r, N6 z9 e+ hfinancial conditions and respond to competitive imperatives. There is early evidence of a
; [0 r1 f9 W+ \7 l9 P5 vrecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
  w& Z  i6 ~: |. _, ^% o; L9 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
performance.
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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
" h2 k8 A- _! ]  i0 i# _! Y, jconsiderable slack in the economy.
* ^, k6 D( ?9 |* e$ X
Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
$ k; \# H6 z) A  mat 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:
$ U- r3 ?$ C- f
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.