YELLOWKNIFE, April 1 /CNW Telbec/ - Although the global and Canadian
economies are in recessions triggered by the most severe financial meltdown
since the 1930s, Canadians can have confidence that unprecedented policy
measures will restore growth, Bank of Canada Governor Mark Carney said today.
"There is a plan to restore confidence and growth, we are implementing
it, and it will work," Governor Carney said in a speech to a joint meeting of
the Northwest Territories and Yellowknife Chambers of Commerce.
Since the necessary triggers for recovery must occur beyond our borders,
Canadian authorities are working intensively with international colleagues to
re-establish trust in the global financial system. The domestic priority is to
cushion the effects of the global recession. "Canadians can have confidence
that the right policies are being put in place," Governor Carney said. "They
can manage their affairs in expectation - rather than hope - of a recovery."
The Governor remarked that the current crisis is more challenging than
previous downturns because it represents more than a cyclical shock. It also
marks the advent of three major secular shifts: the correction of large
current account imbalances in several major economies; significant adjustments
in the design and use of financial services; and the beginning of a period of
lower global potential growth.
These shifts, coupled with a global downturn and declining demand for
Canada's exports, make this a very difficult year for the domestic economy,
said Governor Carney. The Bank will publish its updated economic projection in
its Monetary Policy Report on 23 April.
Stabilization of the global financial system remains a precondition for
economic recovery, Governor Carney said. In this regard, implementation of
recently announced plans to address toxic assets in banking systems outside
Canada will be critical.
In the meantime, the freefall in domestic demand and an atmosphere of
exceptional uncertainty has created an intense need for massive, credible
policy action. "This need is being met - there has been an unprecedented
monetary and fiscal response," the Governor concluded. "The effects of these
policies will build over time and will be felt with full force next year."
For further information:
For further information: Jeremy Harrison, (613) 782-8782