Reuters: US Dollar Report: HIGHLIGHTS-Bank of Canada's Carney speaks in Ottawa

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HIGHLIGHTS-Bank of Canada's Carney speaks in Ottawa Oct 31st 2012, 18:41 Wed Oct 31, 2012 2:41pm EDT Oct 31 (Reuters) - Below are key quotes from an appearance by Bank of Canada Governor Mark Carney on Wednesday in Ottawa: "When you're in a situation, as we are, where debt as a whole is very high relative to income in the economy, the possibility of procyclicality happening when there is a shock to the economy, so there is a shock, unemployment goes up, some people start to be unable to service their mortgage for obvious reasons, that starts to hit house prices. That reduces the willingness of people to buy houses. At the moment they hold back as prices move down, and there is less activity in the housing sector, there's more unemployment. These types of procyclicalities can cause the problem. It's one of the reasons why we obviously focus on the debt side and the liquidity and the ability to service that debt side on a variety of circumstances. All that said, our warnings about this issue are driven from a position of the country and officials and individuals being able to do something about it. The horse is not out of the barn."

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