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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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OTTAWA - The Bank of Canada today announced that it is raising its target for the overnight( u1 v0 L0 l% d! q- o$ a
rate by one-quarter of one percentage point to 1/2 per cent. The Bank Rate is correspondingly5 D6 S. ?, [9 s8 d" ~. @% T$ P
raised to 3/4 per cent and the deposit rate is kept at 1/4 per cent, thus re-establishing the normal3 H, C/ T( ]0 Y% V# Z- Z1 {
operating band of 50 basis points for the overnight rate.' w1 F4 A$ [# s5 B D' p7 ?- X, k h
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The global economic recovery is proceeding but is increasingly uneven across countries, with
8 }5 P: i* B0 F9 A+ R! Kstrong momentum in emerging market economies, some consolidation of the recovery in the$ p4 O" y0 j! r6 C5 ?
United States, Japan and other industrialized economies, and the possibility of renewed weakness
: a7 R1 H5 V4 L7 ]) Y9 [in Europe. The required rebalancing of global growth has not yet materialized.$ |$ l0 b' x" P& M
In most advanced economies, the recovery remains heavily dependent on monetary and fiscal
7 V# h& K O! V' e2 a2 W# O" y9 D0 ?/ I$ Wstimulus. In general, broad forces of household, bank, and sovereign deleveraging will add to the
. |# m2 {7 [% A; xvariability, and temper the pace, of global growth. Recent tensions in Europe are likely to result8 D8 }1 l" A. h9 \, u7 i
in higher borrowing costs and more rapid tightening of fiscal policy in some countries - an- u7 Q; E+ \. c
important downside risk identified in the April Monetary Policy Report (MPR). Thus far, the d' ^# N/ B- ~% c' f. ^* j
spillover into Canada from events in Europe has been limited to a modest fall in commodity
3 R' { l/ w- N' i# ^prices and some tightening of financial conditions.5 f; Q$ b. P H- V) T) F
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Activity in Canada is unfolding largely as expected. The economy grew by a robust 6.1 per cent& p; N2 [' }- X- O' y
in the first quarter, led by housing and consumer spending. Employment growth has resumed.
+ f9 T: @9 P% n3 h; jGoing forward, household spending is expected to decelerate to a pace more consistent with
, Y3 Q& V/ j/ k5 Y& I+ ^income growth. The anticipated pickup in business investment will be important for a more0 [# }. ^' s9 I7 i* I+ I
balanced recovery., G* F J7 @- Q2 [, l1 `
1 S/ }! f. i; s! B3 j6 E" _CPI inflation has been in line with the Bank's April projections. The outlook for inflation reflects3 {1 q. ?; X, F3 B# C4 B
the combined influences of strong domestic demand, slowing wage growth, and overall excess
3 x6 b2 V$ s- o! k' H+ {4 esupply.
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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
5 F( J5 ?- m5 G$ R I( Q d: Xto re-establish the normal functioning of the overnight market. This decision still leaves considerable
& U; K+ W7 W" Qmonetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the * O( a, S# p- {) K% V5 K s) r* c$ [: [
significant excess supply in Canada, the strength of domestic spending, and the uneven global recovery.
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( R5 I; O5 j- XGiven the considerable uncertainty surrounding the outlook, any further reduction of monetary
/ z3 I W+ w: M3 E& H4 O0 ystimulus would have to be weighed carefully against domestic and global economic
2 J, c$ O- P7 h& gdevelopments.
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Information note:8 i! c1 M( J) B0 ]* |% I
The next scheduled date for announcing the overnight rate target is 20 July 2010. A full update! m* ?$ N! r. t; ~0 }7 T; e% `
of the Bank's outlook for the economy and inflation, including risks to the projection, will be& U8 p g% V+ `3 A
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！
