BoC's Macklem says low-rate strategy stretched

KINGSTON, Ontario Thu Jan 10, 2013 5:10pm EST

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KINGSTON, Ontario Jan 10 (Reuters) - The Bank of Canada's low interest rate strategy is reaching its limit because of the country's high levels of household debt, the central bank's senior deputy governor, Tiff Macklem, said on Thursday.

In an earlier speech, Macklem said Canada's economy will likely be more sluggish than expected in the near term, and the Bank of Canada will take that into account in its revised economic forecasts later this month.