TORONTO, March 11 (Reuters) - Bank of Canada Governor MarkCarney said on Thursday the fallout from the global economiccrisis was not yet over, but that innovative central bankinghad laid the groundwork for a successful recovery.
Below are additional comments from his appearance inOttawa:
ON CANADIAN VS U.S. RATE POLICY
"It is the responsibility of the Federal Reserve to directthe monetary policy of the United States and it is ourresponsibility to direct Canada"s (policy). It is absolutelynot necessary to have the same monetary policy at the same timein the two countries."
ON EXCHANGE RATES AND THE INFLATION TARGET
"If the combination of the level of the exchange rate,underlying economic activity in Canada, the terms of trade ofthe country, are such that we"re going to miss that inflationtarget, we"ll take action and we"ll set policy appropriately."
"As we"ve said repeatedly in the past, we have considerableflexibility in the conduct of monetary policy to address anysituation ... in order to achieve the inflation target."
"With a flexible exchange rate we"re on the hook forachieving the inflation target. We don"t have an out."
ON REGIONAL ECONOMIC DIFFERENCES
"We have to conduct monetary policy for all of Canada. It"sabsolutely essential that we take into consideration theeconomic situation in each province, in each territory."
"But as a whole and I would say we have regional offices,we do a tremendous amount of industry business ... I think wehave a very good handle on what"s happening in each region ofthe country. But that said, at the end, what matters is theoutlook in its entirety for activity and inflation in Canadaand our job is to achieve that inflation target so thatCanadians, in whatever region, can plan and investaccordingly."
ON RATE POLICY
"It"s our policy right now that the appropriate path ofmonetary policy through the end of June this year is to keepour target rate at one quarter of one percent. But we willadjust that as appropriate over time in order to achieve ourinflation target."
ON INTERNATIONAL REGULATION
"I think there"s some pretty basic things here and this ispart of what we can bring to these international discussionsand it"s part of the answer and part of the reason why I havesome confidence that there will be a consensus and someprogress on international regulation." (Reporting by Ka Yan Ng and Jennifer Kwan in Toronto, andLouise Egan and David Ljunggren in Ottawa; editing by JeffreyHodgson)
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