HIGHLIGHTS-Bank of Canada's Carney speaks in Ottawa

Wed Oct 31, 2012 3:52pm EDT
 
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Oct 31 (Reuters) - Below are key quotes from an appearance by Bank of Canada Governor Mark Carney on Wednesday in Ottawa:

ON REASONS FOR ACCOMMODATIVE MONETARY POLICY:

"As we've been discussing there are a lot of headwinds against the Canadian economy from the rest of the world. There's a challenge to encourage business to invest. There are pressures on the currency. There are a variety of reasons why it's advantageous to have very accommodative monetary policy and that's what we have here in Canada, very accommodative monetary policy. And monetary policy consistent with that 2 percent inflation target."

ON HOUSING MARKET ADJUSTMENT:

"We're getting some mixed signs in terms of the evolution of household imbalances. There's been a slowing in the rate of growth in debt that is notable, we think that is continuing as we speak. There has been signs of adjustment in the housing market itself in various pockets ... the condo market is still pretty hot. The other housing markets are adjusting and so we with others are continuing to watch the situation and be vigilant and will respond as appropriate."

ON STRENGTH OF THE CANADIAN DOLLAR:   Continued...