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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" Q8 r4 S9 l- p8 V; J
rate by one-quarter of one percentage point to 1/2 per cent. The Bank Rate is correspondingly
& N) w: ^ B- N0 Yraised to 3/4 per cent and the deposit rate is kept at 1/4 per cent, thus re-establishing the normal
2 A) ]' P6 p4 v( ?2 O! A7 i! loperating band of 50 basis points for the overnight rate.6 u6 n& U- b+ c( S T# W e' J; C; k
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The global economic recovery is proceeding but is increasingly uneven across countries, with8 l0 O) T; Q" u1 A( N' \
strong momentum in emerging market economies, some consolidation of the recovery in the
8 L2 \# H& a, a- w7 M" E* P1 oUnited States, Japan and other industrialized economies, and the possibility of renewed weakness
8 G$ h0 V0 |8 x3 C# Nin Europe. The required rebalancing of global growth has not yet materialized.* W/ u5 I# ^5 H: C" j
In most advanced economies, the recovery remains heavily dependent on monetary and fiscal6 D4 P* ~/ }* X, y
stimulus. In general, broad forces of household, bank, and sovereign deleveraging will add to the3 ?. r* H) U9 A2 U+ r: m
variability, and temper the pace, of global growth. Recent tensions in Europe are likely to result9 B P4 O; h# \& _/ ]6 b9 ]( k( F& I
in higher borrowing costs and more rapid tightening of fiscal policy in some countries - an
& d7 }. Z3 ~0 p8 c* }important downside risk identified in the April Monetary Policy Report (MPR). Thus far, the
! d% N1 `! t1 W, pspillover into Canada from events in Europe has been limited to a modest fall in commodity
: i. E% L! [" a" N2 Oprices and some tightening of financial conditions.5 ?" J1 C, s1 K& J# [2 F8 e, s
8 u1 c0 W- q! e9 Y* w5 YActivity in Canada is unfolding largely as expected. The economy grew by a robust 6.1 per cent0 n- Z2 t9 H9 E) I- x* F
in the first quarter, led by housing and consumer spending. Employment growth has resumed.% X! d7 J+ U3 ^8 k! m
Going forward, household spending is expected to decelerate to a pace more consistent with
2 H% D' ], L2 ?3 `* |9 E2 H# Dincome growth. The anticipated pickup in business investment will be important for a more
$ z4 O+ j, T! E$ R8 p: C% }balanced recovery.# S" q0 x* r |: I7 v c
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CPI inflation has been in line with the Bank's April projections. The outlook for inflation reflects
, i* S% b% ^. n. a F6 z. Ithe combined influences of strong domestic demand, slowing wage growth, and overall excess
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In this context, the Bank has decided to raise the target for the overnight rate to 1/2 per cent and5 y0 b N2 r9 f: P" K4 u
to re-establish the normal functioning of the overnight market. This decision still leaves considerable
9 N+ o5 I) w# K* c4 v7 xmonetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the 5 E! D: c/ z3 A) k& k
significant excess supply in Canada, the strength of domestic spending, and the uneven global recovery.
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Given the considerable uncertainty surrounding the outlook, any further reduction of monetary
) I# s/ _: W7 a" c- rstimulus would have to be weighed carefully against domestic and global economic
+ B* G* m2 F9 Y) S7 L+ S. ^developments.
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+ k, f8 L) i" TInformation note:0 j3 L. H8 m u) w8 s0 B) ]& K ?! k
The next scheduled date for announcing the overnight rate target is 20 July 2010. A full update4 x( c% Q3 B. }- g/ `5 n
of the Bank's outlook for the economy and inflation, including risks to the projection, will be
# [0 ~7 u& E3 z. R- Apublished 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！