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.
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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
1 M. ~$ x( \& o2 n3 u2 vsolidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
: L. A# F8 H9 h0 V, j' b2 `challenges associated with sovereign and bank balance sheets will limit the pace of the European
+ \. J9 E9 M$ I" vrecovery and are a significant source of uncertainty to the global outlook. Robust demand from
# _9 }( O% {7 Aemerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.

, A  Z- U3 y0 AThe recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
+ g( P+ B  n, C2 Zthe anticipated rebalancing of demand. While consumption growth remains strong, there are
signs that household spending is moving more in line with the growth in household incomes.
# w( X- I* T+ PBusiness investment continues to expand rapidly as companies take advantage of stimulative
financial 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.
+ K0 w$ G# p" `- s" OHowever, the export sector continues to face considerable challenges from the cumulative effects
+ e8 N. j2 K; r: W! R8 kof the persistent strength in the Canadian dollar and Canada's poor relative productivity
: R( V/ t, u* g# a; D* [# fperformance.

While global inflationary pressures are rising, inflation in Canada has been consistent with the
5 A3 n6 E- f- K' \5 Q% KBank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
% R  o+ ]9 Q# ~* rconsiderable slack in the economy.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
' b1 I$ s( C4 p& ~at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
5 k% i% G+ y% F. M, X$ R8 `  i2 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.
9 o5 a. e; B8 k( dInformation note:
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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.