Bank of Canada repeats language on higher interest rates

Tue Apr 23, 2013 10:40am EDT
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OTTAWA (Reuters) - Outgoing Bank of Canada Governor Mark Carney on Tuesday repeated the central bank's warning that it expects its next move to be an interest rate increase, even after recently cutting growth forecasts.

"The considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required, consistent with achieving the 2 per cent inflation target," he told a Canadian parliamentary committee.

The Bank of Canada last week chopped its economic growth forecasts and welcomed signs of a cooler housing market as it left its benchmark lending rate unchanged.

(Reporting by Louise Egan and David Ljunggren; Additional writing by Jeffrey Hodgson; Editing by James Dalgleish)

Outgoing Bank of Canada Governor Mark Carney prepares to testify before the Commons finance committee on Parliament Hill in Ottawa April 23, 2013. REUTERS/Chris Wattie