Reuters: US Dollar Report: UPDATE 1-Bank of Canada says strong C$ a drag on economy

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Bank of Canada says strong C$ a drag on economy Sep 25th 2012, 20:57 Tue Sep 25, 2012 4:57pm EDT * Deputy Governor Lane says central bank has no target for currency * Says bank's focus is on inflation targets By Scott Haggett CALGARY, Sept 25 (Reuters) - The strong Canadian dollar has been a drag on the Canadian economy for the last few years, but the Bank of Canada has no target for the currency's level and focuses instead on inflation targets, central bank Deputy Governor Timothy Lane said on Tuesday. "The Canadian dollar is a factor that we look at very closely in relation to the economic outlook for Canada and for the last few years has been at a level that represents a drag on the Canadian economy, particularly with regards to our export performance," Lane told a business audience after a speech in Calgary. "But when we look at the exchange rate in relation to making monetary policy, we view that through the prism of our inflation target ... we don't have a target for the level of the exchange rate, but rather we factor it in." Canada's currency soared to a 13-month high this month on hopes that new stimulus measures by U.S. and European central banks will revive global growth. The Bank of Canada has said repeatedly the currency's strength has dampened economic growth by making it tougher for exporters to stay competitive. In its most recent policy decision on Sept. 5, the central forecast Canadian exports will remain below their pre-recession peak until the beginning of 2014, partly because of "the persistent strength of the Canadian dollar". Lane also noted that when the central bank makes monetary policy, it does so for the broader economy and not any specific sector or region. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions