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.

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
" B, q; T& v7 z. \, _; J% @solidifying 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
9 \3 Y" u0 k& q2 U( b- c2 Urecovery and are a significant source of uncertainty to the global outlook. Robust demand from
) O4 P! x* B  q  y5 w$ S2 Pemerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.
  }. c5 d% ]. }" S
1 t3 D' ?% h' pThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
, S- I4 C, M* C0 m# sthe anticipated rebalancing of demand. While consumption growth remains strong, there are
" w# p: R4 y+ l" Xsigns that household spending is moving more in line with the growth in household incomes.
1 C/ B6 p. R! {; N& U- T7 TBusiness investment continues to expand rapidly as companies take advantage of stimulative
" Y2 N9 c) X& v& u) r1 M; rfinancial conditions and respond to competitive imperatives. There is early evidence of a
( i) X4 q5 f! n; Vrecovery 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
3 M/ ~  R, C4 F6 M, U# S% ^of the persistent strength in the Canadian dollar and Canada's poor relative productivity
performance.
2 J$ {% t1 V& }! O6 P9 G
  ~4 _$ l. K2 |! UWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
: E/ H' _- T8 s% Econsiderable slack in the economy.

5 u+ ^$ C3 u& }, [+ v2 X6 CReflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
2 g8 F) Z  c% D$ A% B+ P9 B& u- qat 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.
. Z- j) h# |0 `' R8 A! aInformation 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.