Bank of Canada Governor Mark Carney Holds Little Hope on Job Rebound

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The Bank of Canada Governor Mark Carney is holding out little hope of seeing a quick recovery in the jobs market.

He economy may begin to show signed of life, the jobless rate is currently running at 8.4% and that last tally of jobs lost this year is still at 395,000.

Opposition from Members of Parliament has come about, expressing its concerns that Canada might be heading into a jobless recovery.

Carney noted that there are early signs of stabilization in Canada’s job market; however business in Canada is still operating well below capacity.

Once again, Carney has repeated that the higher loonie, which is trading well above 90 cents U.S. is endangering Canada’s rebound from the recession. When the loonie rises on exchange markets, it makes Canada’s exports less competitive, especially in the U.S. market.

To help the economy recover from recession, Carney has promised barring an outburst of inflation; to keep the central bank’s overnight bank lending rate at its record low of 0.25% until mid-2010.

After confirming this plan last week, it took some steam out of the loonie.

There has been talk of expanding the central bank’s management role of the economy; however Carney made it clear that the ultimate responsibility for the operation of Canada’s financial system lies with the minister of finance, and any changes in current arrangements is up to the Parliament.

Carney also made it clear that Canada’s economy is showing signs of recovery, however there are still “basic” challenges that remain.

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