21 July 2010
Even at this point, the Bank’s rate is still very low. Carney said it provides “serious monetary stimulus”.
Mark Carney is trying to keep the balance between the necessity to calm down the economic stimulus and saving Canada’s business healthy environment. In addition to it, there’s great pressure from Europe and U.S. unstable situation.
The Bank announced the housing activity is decreasing.
“The employment growth has resumed, but the business investment is influenced by the global uncertainties”, – Carney said.
“The global economic recovery is proceeding but it’s not the end,” – Carney noted. The European debt crisis together with the U.S. unstable situation, remain uncertain.
With such “uneven global recovery,” Carney noted that further interest rate hikes would be seriously thought over.
The economists are sure Carney is doing the right thing.
“With today’s interest rates, the central bankers are really sure that there’s no need for Canada in such extreme stimulus from monetary policy,” he said.
Carney will give more information in the Bank’s monetary policy report on Thursday.
The next BoC interest rate meeting is September 8.