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Carney Says Monetary Policy Last Resort for Stability Issues

Bank of Canada Governor Mark Carney said there is a role for the central bank to tackle financial stability issues if the problem becomes broad-based within a flxible inflation targeting framework, though any such move would need to be “well-explained.”

Carney, in comments to lawmakers today in Ottawa, said regulations at the “micro” level, through the country’s banking regulator, and “macro” measures by the government should be considered, if the issue isn’t “generalized.”

Carney said monetary policy would be a last resort.

To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net

To contact the editor responsible for this story: Paul Badertscher at pbadertscher@bloomberg.net

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