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 l( M4 j6 W* G$ r. v
The global economic recovery is proceeding broadly in line with the Bank's projection in its
, j0 i5 ]3 S7 G: `+ u$ ]January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
3 c" i% X% i& ]- D7 {solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
6 S8 ?; e( H. h+ achallenges associated with sovereign and bank balance sheets will limit the pace of the European
6 j- r+ P3 Q0 _9 h3 _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
be further reinforced temporarily by supply shocks arising from recent geopolitical events.

2 \/ D" q1 J- o1 i/ OThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
5 c$ a/ X) E$ Q$ Y+ fthe anticipated rebalancing of demand. While consumption growth remains strong, there are
: n2 G6 d- O7 U. L/ d" {" Wsigns that household spending is moving more in line with the growth in household incomes.
8 `0 Z' w( z+ R; U0 n  F# m) H0 lBusiness investment continues to expand rapidly as companies take advantage of stimulative
7 X$ m" d4 F  Q. f  ~financial conditions and respond to competitive imperatives. There is early evidence of a
0 {  }7 e3 ?# zrecovery in net exports, supported by stronger U.S. activity and global demand for commodities.
& x* V0 L' ?3 L6 FHowever, 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.

- N4 d( I+ S* Z( HWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.

( O& R4 k. U0 m' \7 m9 v5 SReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
0 V, I" @+ [1 ?' d: Q& t. Zat 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
% O6 ^* ~7 a! g) Z! c3 Z2 per cent inflation target in an environment of significant excess supply in Canada. Any further
& e/ N/ n) g6 treduction in monetary policy stimulus would need to be carefully considered.
) i! J. w5 r3 i6 C" d. Z3 |( b: JInformation note:

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.