UPDATE 2-Bank of Canada's Carney won't cram in moves before exit

Tue Dec 11, 2012 4:33pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Carney repeats that rate hikes likely needed

* Sees softness in economy; positive signs in housing, debt

* Says policy guidance is never a promise

By Solarina Ho and John Tilak

TORONTO, Dec 11 (Reuters) - Bank of Canada Governor Mark Carney, who has signaled for months that the central bank's next interest rate move will be an increase, said on Tuesday he won't rush through any policy decisions before he leaves in June to head the Bank of England.

After his first speech since his surprise appointment as BoE governor, Carney was asked if he would leave the nagging problem of soaring household debt for his successor to deal with.

"What would be entirely wrong is to manage policy to my horizons as opposed to the right horizons to have, the optimal policy horizons. We're not going to try to cram a bunch of decisions into the next six months," he said.

Carney repeated the bank's hawkish line that it will likely need to raise rates, making it an outlier among developed countries' central banks, which are more concerned about stimulating growth.

Markets don't expect a rate move before late 2013.   Continued...