BoC: stimulus still needed despite concern over stability risks

Tue Nov 4, 2014 10:47am EST
 
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OTTAWA Nov 4 (Reuters) - The Bank of Canada still needs to inject monetary policy stimulus into the flagging economy despite concerns over financial stability risks such as household imbalances, Governor Stephen Poloz said on Tuesday.

The central bank has kept interest rates at near-record lows for more than four years and says there will be no hikes until substantial slack in the economy is eliminated.

"Certainly financial stability risks, especially those related to household imbalances, remain a concern to us here in Canada. But our economy faces significant headwinds and continued monetary policy stimulus is needed to offset them," Poloz told the House of Commons finance committee.

(Reporting by David Ljunggren; Editing by Chizu Nomiyama)