Governor Dodge discusses recent market turbulence: causes, effects and lessons

    VANCOUVER, Sept. 25 /CNW Telbec/ - Canadian money markets are functioning
better after being affected by this summer's turbulence, but they are not yet
back to normal, Bank of Canada Governor David Dodge said today in a speech to
the Vancouver Board of Trade.
    Governor Dodge reiterated his message that the events of the summer have
also highlighted the clear case for improved transparency in financial
markets. "Markets need information in order to operate efficiently. So it is
in the interest of market participants to make sure that parties have access
to all the necessary information."
    It will take some time to fully assess the implications of the financial
market turbulence for the Canadian economy, although it has already meant some
tightening of credit conditions for borrowers, the Governor said. The extent
of this tightening isn't yet known, although it should temper the growth of
domestic demand. The Bank will provide analysis on these issues in the next
Monetary Policy Report, to be published on 18 October, said Governor Dodge.

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