CORRECTED-CANADA FX DEBT-Hawkish central bank supports C$, hits some debt
(Corrects to remove reference to commentary on Europe in 7th paragraph)
* C$ at C$0.9926 versus the US$, or $1.0075
* Bank of Canada largely holds to hawkish line on rates
* Global growth fears erase early C$ rally
By Alastair Sharp
TORONTO, Oct 23 (Reuters) - The Canadian dollar held steady versus the U.S. currency while short-term debt prices fell on Tuesday after the Bank of Canada surprised markets by largely retaining its hawkish view that interest rates should be raised over time.
The central bank, highlighting soaring household debt, repeated much of the rate-hike language that has made it an outlier among major economies, while making the time frame for rate hikes less definite.
The Canadian dollar had weakened after Governor Mark Carney omitted reference to the central bank's tightening bias in a speech a week ago.
"Obviously they kept the hawkish bias, which I think took the markets by surprise, so we've had a rally in the Canadian dollar," said Camilla Sutton, chief currency strategist at Scotiabank. Continued...