MARCH 1st, 2011 -BANK OF CANADA- NO CHANGE FOR THE OVERNIGHT RATE(ZT)

郭森房贷

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.

The 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
' j9 R; E7 E3 Dsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
challenges associated with sovereign and bank balance sheets will limit the pace of the European
# ?! ^) j  G3 j+ n; N6 irecovery 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
1 I: h( f) m! ?be further reinforced temporarily by supply shocks arising from recent geopolitical events.
8 s2 f4 E- v1 R) e
* k& m: l" ]% N# E: B& y, ]) B# f: JThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
* N- ~; _: W0 L4 a2 K( U8 zthe anticipated rebalancing of demand. While consumption growth remains strong, there are
5 z1 u- ]5 V+ P3 X8 z% Gsigns that household spending is moving more in line with the growth in household incomes.
$ E$ I9 G' j& M  ]1 NBusiness investment continues to expand rapidly as companies take advantage of stimulative
( r) ^2 N- L/ f. `2 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.
However, the export sector continues to face considerable challenges from the cumulative effects
  N. R* s$ i% {# t. l' @9 pof the persistent strength in the Canadian dollar and Canada's poor relative productivity
performance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
) |! h) M, _# l2 F, NBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
# }3 Z$ {& |' c  @- Z# tconsiderable slack in the economy.

$ {7 k$ w  [- y- M  _Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
+ [! m' t; }/ o+ Nat 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:
5 ~) V1 J  P: \( H' ?5 n  g
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.