HIGHLIGHTS-Bank of Canada's Carney speaks in Ottawa

Tue Feb 12, 2013 10:52am EST
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Feb 12 (Reuters) - Below are key quotes from an appearance by Bank of Canada Governor Mark Carney and Senior Deputy Governor Tiff Macklem:


"My commitment to the board, to this committee, to Canadians, is to ensure there is a seamless transition to the next governor ... my intention is to serve to June 1. The ideal obviously will be that there is a short transition, not too long, but there is a short overlap to assist that individual in taking charge and I'm highly confident that the institution will be well served by the next governor, whoever he or she is."


"Since our last (Monetary Policy Report) there has been a major shift in the policy stance in Japan. There's a fiscal expansion of a little more than 2 percentage points and they have moved to a 2 percent inflation target. The monetary policy framework previously was a less-than-2-percent inflation target. There has been some concern that associated with those major very positive developments in macro policy that Japanese authorities were targeting a certain level of the exchange rate. There have been discussions at the G7 about this. I'm sure there will discussions this weekend at the G20 ..."

"The crucial point that we make here in Canada, and the Japanese authorities have agreed to acknowledge, is that monetary policy is focused on domestic outcomes, so if you're focusing on the 2 percent inflation target, you're targeting that domestic outcome, not the exchange rate. That said, monetary policy has consequences for the exchange rate, all other things being equal. And if monetary policy is looser, more accommodative than it was previously ... as it is in Japan given that they have raised the target for inflation materially, that will have consequences for the exchange rate. But the important thing is to stay focused on the medium term."