OTTAWA — Bank of Canada governor Mark Carney says he does not envision that the struggling economy will require additional monetary stimulus.
The central bank governor says he believes the economy will begin to grow again late this year, after four quarters of decline that began at the end of last year. Carney says that as things stand today, he believes there is enough stimulus from governments and the bank to provide the boost the economy needs.
He sees the elements of recovery forming, including a gradual improvement in the world economy, the housing markets in the U.S. and Canada, the depreciation of the Canadian dollar and Canada's sound financial system.
But he admits that the economic recovery will be muted, growing only by 2.5 per cent in 2010 after falling back a full three per cent this year.
While he says he is optimistic, he underplayed talk of encouraging green shoots appearing on the economic terrain as premature.
It is too soon to be totally reassured, he says.
And Carney says he is prudently planning for worse.
Carney says in case of a financial system shock, he has prepared plans to intervene by expanding the money supply or purchasing corporate assets - so-called quantitative and credit easing.
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