UPDATE 1-Canada says has best fiscal position in G7

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OTTAWA, Oct 4 (Reuters) - Canada has a strong economy and the best fiscal position in the Group of Seven leading industrialized nations, Finance Minister Jim Flaherty said on Thursday as he announced a new governor of the Bank of Canada.

Canada is the only Group of Seven country that is running budget surpluses, and its latest surplus came in C$4.6 billion higher than forecast in the March 2007 budget.

The Bank of Canada has left its overnight rate steady at 4.50 percent, while the U.S. Federal Reserve cut its federal funds rate by 50 basis points to 4.75 percent last month to help avoid a prolonged economic slowdown there.

($1=$1 Canadian)