Bank of Canada hints at more rate cuts to come

TORONTO, Jan 8 (Reuters) - The Bank of Canada continues to monitor economic and financial developments to determine the extent of any further interest rate cuts this year, Deputy Governor Pierre Duguay said in a speech on Thursday.

Duguay, in a speech to the Risk Management Association in Toronto, said the weaker Canadian dollar and a 1.5 percentage point reduction in the central bank's key overnight rate since last October would help offset the effects of a global recession.

The bank's next rate decision is on Jan. 20 and markets widely expect it to reduce its rate, now at 1.5 percent, by either 25 or 50 basis points. (Reporting by Louise Egan; editing by Peter Galloway)