Bank of Canada says global stimulus to work: report

Tue Mar 31, 2009 10:30am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

OTTAWA (Reuters) - Bank of Canada Governor Mark Carney is confident that stimulus measures taken by governments around the world will succeed in restoring growth, according to a newspaper interview published on Tuesday.

"There is a tremendous effort underway to reinflate the global economy . . . this is going to take time . . . it will work . . . there will be a restoration of global growth," he was cited as saying to the Calgary Herald.

Carney said the central bank's forecasts for the Canadian economy are realistic but reiterated that they will be adjusted in an April 23 report.

The bank's forecast of a return to economic growth in the third quarter of this year and annual growth of 3.8 percent in 2010 are widely seen as overly optimistic. He had previously hinted that those will be revised down.

The interview followed a speech in Edmonton, Alberta in which Carney urged G20 powers to take a system-wide approach to reforming financial regulations, taking into account the interaction between banks and markets.

Carney is headed to Yellowknife in the Northwest Territories for a speech and news conference on Wednesday.

(Reporting by Louise Egan; Editing by Jeffrey Hodgson)

 
<p>Bank of Canada Govenor Mark Carney speaks at a news conference following the G20 Finance Ministers meeting at a hotel, near Horsham, in southern England March 14, 2009. REUTERS/Kevin Coombs (</p>