Bank of Canada views Fed tapering positively

Tue Aug 27, 2013 1:07pm EDT
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KINGSTON, Ontario Aug 27 (Reuters) - The eventual removal by the U.S. Federal Reserve of its monetary policy stimulus should be viewed positively, Bank of Canada Deputy Governor John Murray said on Tuesday in a rebuttal to the critics of possible Fed tapering.

He said that whenever the Fed begins winding down its unconventional monetary policy, it will take place in the context of a strengthening U.S. economy.

"The improving underlying strength of the U.S. economy should more than compensate for the drag from higher interest rates. Stronger external demand, coupled with downward pressure on our currency and support for commodity prices from a global economic recovery, will provide the lift," he said in a speech.