Bank of Canada repeats pledge on rates

Tue Oct 27, 2009 11:57am EDT
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OTTAWA (Reuters) - The Bank of Canada repeated on Tuesday a conditional pledge to keep interest rates steady through mid-2010, saying the Canadian dollar's strength would more than fully offset favorable developments since July.

Governor Mark Carney, in opening remarks to the House of Commons finance committee, said recent indicators point to the start of a global recovery and that a recovery is under way in Canada following three consecutive quarters of sharp contraction.

He also repeated that the central bank has "considerable flexibility in the conduct of monetary policy at low interest rates," language that means that the bank could, if necessary, engage in quantitative easing, essentially printing money.

(Reporting by Randall Palmer; editing by Peter Galloway)

<p>Bank of Canada Governor Mark Carney (L) arrives to testify before the Commons finance committee with Senior Deputy Governor Paul Jenkins on Parliament Hill in Ottawa, October 27, 2009. REUTERS/Chris Wattie</p>