Bank of Canada head repeats rate hike not a given
Speech nearly identical to one given June 16
ST. JOHN'S, Newfoundland, June 18 (Reuters) - Bank of Canada Governor Mark Carney cautioned investors again on Friday not to take another interest rate hike for granted, saying volatile global conditions mean no particular path for monetary policy is preordained.
Carney made the comments in the prepared text of a speech he was giving in St John's, Newfoundland. The speech was nearly identical to one given on June 16 in Charlottetown, Prince Edward Island.
The bank must balance the competing influences on Canadian activity and inflation of momentum in domestic demand and the increasingly uneven global recovery, Carney said in both speeches.
In light of the scale and volatility of these conflicting forces, it should be evident that no particular path for monetary policy is preordained.
Carney repeated that the bank will need to be agile and take a subtle approach to monetary policy.
The central bank raised its key rate by a quarter point on June 1 to 0.5 percent, becoming the first in the Group of Seven wealthy countries to do so. Markets are pricing in an 81 percent chance of a second hike when the bank makes its next rate announcement on July 20. BOCWATCH (Writing by Jeffrey Hodgson, Editing by W Simon )
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