UPDATE 2-Canada's Flaherty: despite ECB cut, rates will rise over long term

Thu Nov 7, 2013 12:28pm EST
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By John Tilak

TORONTO Nov 7 (Reuters) - Interest rates are going to go up over the long term regardless of what central banks do at the moment, Canadian Finance Minister Jim Flaherty said on Thursday after the European Central Bank unexpectedly trimmed rates.

The bank cut rates to a record low earlier in the day and said it would prime banks with liquidity into 2015 to prevent the euro zone's recovery from stalling.

Flaherty told reporters in Toronto that people "should anticipate over the long term, interest rates will go up regardless of what central banks do now".

"The pressure on interest rates is clearly on the upside," he added. "The period we've had of very low interest rates is an anomaly."

Flaherty and the Bank of Canada, which has kept interest rates at a near-record low since September 2010, have repeatedly told Canadians to be careful when taking on debt since borrowing costs will eventually start to rise.