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.

) @# y4 \! [, G  U/ B) KThe 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
3 V, \: R$ c! Y7 [- u2 J; r  X) Csolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
) y# i' Q3 P# o& Q1 X! g+ o$ }. fchallenges associated with sovereign and bank balance sheets will limit the pace of the European
) z& W2 X( o5 H2 S. f" erecovery 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.
" t  _$ d7 J: m! G- ]& g6 C4 W
, j6 r! n: ]1 x0 B- l7 tThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
) V( |& F/ o: o" i3 Mthe anticipated rebalancing of demand. While consumption growth remains strong, there are
: ]9 N1 {8 _! E1 Usigns that household spending is moving more in line with the growth in household incomes.
Business investment continues to expand rapidly as companies take advantage of stimulative
( N" r- V& Q" i, Qfinancial 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.
" }# M/ G6 e. b8 y5 k: tHowever, the export sector continues to face considerable challenges from the cumulative effects
  @4 x/ d2 G) @. A2 mof the persistent strength in the Canadian dollar and Canada's poor relative productivity
* U& V& S; M% j- O; fperformance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
1 \* J- `: d+ i: I, ]/ u. LBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
4 s2 s7 R, _6 T9 uconsiderable slack in the economy.
( z5 {6 {8 G* }' W
. \+ T+ R' c! J3 W$ nReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
4 m# I) l0 e. Lat 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
, w7 v6 y0 m8 p2 [+ d) |$ Ereduction in monetary policy stimulus would need to be carefully considered.
Information 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.