TORONTO--Departing Bank of Canada Governor Mark Carney said he will focus on price stability, growth and reforming the European Union financial system as soon as he takes over as the Bank of England's next governor later this year.
In an interview on Canadian television Sunday morning, Mr. Carney said it was important to get the Bank of England " focused on price stability, focused on growth, repairing the financial system and helping to reform the global system and European system," and he thinks that "British officials have put in place a structure that allows that to happen."
Addressing what kind of monetary policy he will espouse once in England, Mr. Carney echoed a long-held position in Canada that "the most traditional monetary policy is to adjust the short-term interest rate" and that consistent inflation targets "should hold for the other major central banks around the world."
In Canada, Mr. Carney said productivity growth is "less impressive" than it has been in the U.S., but that Canada is seeing growth in the labor market.
Mr. Carney said he was pleased to see that the pace of debt accumulation in Canada has slowed from 10% to "about three per cent," and that he expects income to "stabilize in the next couple of quarters."
Asked about recent drops in the once-white-hot Canadian housing market and whether they will continue, Mr. Carney said "we think there's a bit more to come over the next couple of years" and that Canadians shouldn't expect the value of their homes to continue to rise.
Mr. Carney said that he intends to return to Canada after his tenure at the Bank of England and that he is "most comfortable" in Canada.
At the end of the interview, Mr. Carney was asked if England might adopt a polymer pound, a reference to recent, and controversial, changes to the material of which Canada's banknotes are made.
"The Bank of England is exploring a variety of options for their next currency, yes," he said.
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In an interview on Canadian television Sunday morning, Mr. Carney said it was important to get the Bank of England " focused on price stability, focused on growth, repairing the financial system and helping to reform the global system and European system," and he thinks that "British officials have put in place a structure that allows that to happen."
Addressing what kind of monetary policy he will espouse once in England, Mr. Carney echoed a long-held position in Canada that "the most traditional monetary policy is to adjust the short-term interest rate" and that consistent inflation targets "should hold for the other major central banks around the world."
In Canada, Mr. Carney said productivity growth is "less impressive" than it has been in the U.S., but that Canada is seeing growth in the labor market.
Mr. Carney said he was pleased to see that the pace of debt accumulation in Canada has slowed from 10% to "about three per cent," and that he expects income to "stabilize in the next couple of quarters."
Asked about recent drops in the once-white-hot Canadian housing market and whether they will continue, Mr. Carney said "we think there's a bit more to come over the next couple of years" and that Canadians shouldn't expect the value of their homes to continue to rise.
Mr. Carney said that he intends to return to Canada after his tenure at the Bank of England and that he is "most comfortable" in Canada.
At the end of the interview, Mr. Carney was asked if England might adopt a polymer pound, a reference to recent, and controversial, changes to the material of which Canada's banknotes are made.
"The Bank of England is exploring a variety of options for their next currency, yes," he said.
nasdaq.com
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