"Special measures" not needed to protect economy - Bank of Canada

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By Robert Carry

Bank of Canada governor Mark Carney has told a parliamentary committee that his organisation did not expect to have to introduce “unconventional measures" to protect the economy.

According to Reuters, Carney said on Tuesday that the central bank could still intervene in the foreign exchange market if the increasing value or the Canadian dollar began to seriously threaten the economy, but that so far such measures were not deemed necessary.

“We certainly retain all those other options and would underscore our determination to use those options if we think the situation required it in order to achieve the inflation target, but we would only use it to the extent that they were required to achieve the inflation target," Carney said.

“We think that policy is set appropriately to achieve that [inflation] target - staying at 0.25%," continued Carney. “We expect to stay there through the end of June 2010 on current outlook for the global and Canadian economies."

Carney also predicted that Canada would be the first of the Group of Seven leading industrialised nation to see its economy return to full capacity.

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