Feb 12 (Reuters) - Below are key quotes from an appearance by Bank of Canada Governor Mark Carney and Senior Deputy Governor Tiff Macklem:
CARNEY ON CANADIAN HOUSEHOLD DEBT:
'We expect the household debt (to income) ratio to stabilize around current levels. So it's a reasonable prospect that this year and in the coming quarters actually we will see a stabilization of the household debt ratio. And obviously we're watching this very closely, you're watching this closely. And this is one of the reasons why we see a more, quote, constructive evolution of the imbalances in the household sector and have adjusted our guidance on interest rates.'
CARNEY ON PROGRESS IN REDUCING GLOBAL TAIL RISKS TO ECONOMY:
'There have been some very large so-called tail risks in the global economy. The risks around the euro, the risks around the fiscal cliff, which you mentioned. There has been substantial progress in reducing those tail risks. So even though we now expect the European recession to last longer, Europe is in a better place today than they were in October.'
CARNEY ON U.S. GROWTH AND IMPLICATIONS FOR CANADA:
'Even though U.S. growth has been marked down and it may actually be lower than we expect depending on the outcome of the current budget negotiations, debt ceiling negotiations in the U.S., the quality of U.S. growth is better, because what's supporting U.S. growth right now is better quality activity in the household sector, in the housing market, the start on corporate investments. The sustainability of the position is better and so over the medium term, this augurs well for Canada.'
CARNEY ON 2012 GDP GROWTH:
'The shortfall is two-fold through 2012. Growth was less than anticipated, we think it's coming in under 2 percent. Also, GDP inflation was lower as well, so nominal GDP growth was materially less.'
(Reporting by Louise Egan, Randall Palmer and David Ljunggren in Ottawa, and Claire Sibonney and Solarina Ho in Toronto; Editing by Jeffrey Hodgson) Keywords: CANADA CARNEY/
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