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
8 b' ^8 l' O0 P  _January Monetary Policy Report (MPR), although risks remain elevated. U.S. activity is
: N/ v* P& g* _" @0 {solidifying and remains supported by stimulative fiscal and monetary policies. Ongoing
' M  [& H; ^" [" S9 schallenges associated with sovereign and bank balance sheets will limit the pace of the European
& d3 m$ @# ~& G$ erecovery and are a significant source of uncertainty to the global outlook. Robust demand from
% I8 n9 U3 _& Remerging-market economies is driving the underlying strength in commodity prices, which could
be further reinforced temporarily by supply shocks arising from recent geopolitical events.
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The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of
the anticipated rebalancing of demand. While consumption growth remains strong, there are
$ x- x( h* G2 M0 I) L* ]. 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
2 h  U& g" K. `) vfinancial 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.
: T$ g" A( d* S' c' l1 KHowever, the export sector continues to face considerable challenges from the cumulative effects
of the persistent strength in the Canadian dollar and Canada's poor relative productivity
5 g7 {$ w8 x% f$ @- U/ T# sperformance.
+ ^  [! L6 p  H
0 o+ @; p) s% ]5 F, pWhile global inflationary pressures are rising, inflation in Canada has been consistent with the
Bank's expectations. Underlying pressures affecting prices remain subdued, reflecting the
considerable slack in the economy.
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! r" ^3 O" B, @- m; \Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate
at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the
: `9 N/ n. v5 R# f$ {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.
2 W% Y# D/ f$ O0 yInformation 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.