The Bank Canada will stick to its targets in terms of keeping rates low despite talks of economic weakness during the G20 meetings in Moscow, Governor Stephen Poloz told reporters on Saturday.
The governor also defended the US Federal Reserve when prodded to during Saturday's communiqué of central bankers and finance ministers of the G20 nations. He said US Federal Reserve Chairman Ben Bernanke was very clear in relaying its plan to cut back its bond buying.
Among the pertinent discussions during the G20 talks was the need to highlight employment and short-term growth over fiscal consolidation and restructuring. The economic weakness of Europe only highlighted those urgencies, the finance ministers said.
But what Poloz took away from the meetings was just the opposite. He said he came away at peace with the initial forecast of the Bank of Canada. While there's some weaknesses in Europe, he said, Canada's largest trading partner, the United States, is recovering quite nicely.
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