CORRECTED-UPDATE 3-Bank of Canada pushes rate hikes off, cites weak Q3

Wed Oct 24, 2012 12:46pm EDT
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(Corrects year of 2.2 percent growth to 2012 (not 2013); clarifies consumer spending growth estimate revised (not unchanged)

* Carney says new language means rate hike less imminent

* Third quarter growth forecast cut to 1.0 percent from 2.0

* BoC sees more slack in economy than previously thought

* Data revisions imply household sector more vulnerable

By Louise Egan and Randall Palmer

OTTAWA, Oct 24 (Reuters) - The Bank of Canada is likely to raise interest rates later than it once thought, Governor Mark Carney said on Wednesday, citing weak third-quarter growth and more slack in the economy.

"The case for adjustment of interest rates has become less imminent," he said, explaining Tuesday's change in the central bank's language to say a withdrawal of monetary policy stimulus was only likely "over time."

Carney added the caveat: "But it is important to recognize ... that over time rates are more likely to go up than not."   Continued...