OTTAWA Jan 16 Canadian Prime Minister Stephen
Harper said on Thursday he was confident the Bank of Canada's
monetary policy is appropriate and that the movement in the
country's currency was less important than whether its level
reflects economic realities, Bloomberg News reported.
"We have every reason to have confidence that the Bank of
Canada has appropriate monetary policies in place," Harper said
in an interview with the news agency.
The central bank has held its key rate at 1.0 percent since
2010. Governor Stephen Poloz, who has led the bank since July,
abandoned a bias to raise rates last October and now describes
the bank's stance as neutral.
The Canadian dollar has fallen steadily against the
greenback since that October policy shift and touched a
four-year low on Wednesday, bouncing back a little on Thursday.
The U.S. dollar has appreciated nearly 3 percent against the
Canadian currency in the first two weeks of 2014.
Asked whether the Canadian dollar's current level is
appropriate, Harper said: "We have confidence in the monetary
authority and they are ultimately responsible for these issues."
Bloomberg quoted Harper as saying that what matters is
whether the Canadian dollar is "at an appropriate level given
various economic realities". He also said the weaker currency
reflects the strength in the U.S. dollar, which he said had been