Bank of Canada Key Monetary Policy Variables

The following table details some of the key monetary policy indicators the Bank of Canada watches to monitor pressures in the Canadian economy. *T ================================================================================

Sept. Aug. July June May April March

2011 2011 2011 2011 2011 2011 2011 ================================================================================

----------- Inflation Control Target ----------- Total CPI 12-mth YoY% 3.2% 3.1% 2.7% 3.1% 3.7% 3.3% 3.3% Core CPI 12-mth YoY% 2.2% 1.9% 1.6% 1.3% 1.8% 1.6% 1.7%

--------------- Policy Instrument -------------- Overnight rate target 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Overnight rate 0.9989% 0.9977% 0.9986% 0.9981% 0.9967% 0.9970% 0.9944%

-------------- Monetary Conditions ------------- 90-day com. Paper rate 1.15% 1.15% 1.17% 1.17% 1.19% 1.19% 1.18% CERI 118.84 120.44 123.81 121.19 122.30 123.71 121.74 --------------------------------------------------------------------------------

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Sept. Aug. July June May April March

2011 2011 2011 2011 2011 2011 2011 ================================================================================

-------------- Monetary Aggregates ------------- M1+ YoY% n/a 8.0% 7.9% 7.8% 7.2% 8.5% 9.0% M1++ YoY% n/a 7.3% 6.9% 7.0% 6.6% 7.7% 8.3% M2++ YoY% n/a n/a 4.7% 4.7% 4.7% 4.9% 4.9%

------------- Inflation Indicators ------------- Yield spread 1.95% 2.22% 2.51% 2.49% 2.51% 2.69% 2.59% CPI ex food, energy & tax 1.8% 1.4% 1.1% 0.7% 1.2% 1.0% 1.3% CPIW 2.3% 2.1% 1.9% 1.8% 2.1% 1.7% 1.8% Unit labor costs YoY% n/a n/a n/a 2.6% 2.6% 2.2% 2.8% IPPI n/a 2.9% 2.1% 2.5% 2.3% 3.0% 2.1% Average hourly earnings

YoY% of permanent worker 1.6% 1.5% 1.2% 2.0% 2.2% 2.4% 2.6% ================================================================================ NOTE: All percentage changes are year-over-year unless otherwise stated.

The Canadian-dollar effective exchange rate index (CERI) is a weighted average of bilateral exchange rates for the Canadian dollar against the currencies of Canada’s major trading partners.

The yield spread is between conventional and Real Return Bonds.

CPIW: Adjusts each of the CPI basket weights by a factor that is inversely proportional to the component’s variability.