More Benchmark Lending Rate Reductions Planned By Canadian Central Bank

London, England (AHN) - Bank of Canada Governor Mark Carney said Wednesday the bank will make more benchmark interest rate cuts in the future to prevent Canada from entering a recession.

Carney hinted at another short-term key lending rate reduction, on Dec. 9, to further boost the country's economic activities.

In a talk before the Canada-United Kingdom Chamber of Commerce in London, Carney said, "Despite having already cut official interest rates in half over the past year and having a financial sector that is still functioning effectively, some further monetary stimulus will likely be required to achieve the inflation target over the medium term."

The central bank's last forecast was for 0.6 percent gross domestic product growth for Canada, but a revision was necessary following recent global economic events, particularly tighter credit and falling commodity prices. The International Monetary Fund's prediction is a 0.3 percent GDP growth rate for Canada in 2009.

Carney also pushed for reform in financial systems of many counties and for multilateral institutions like the IMF to become stronger and more vigilant in monitoring the global financial systems.