BoC's Carney: Oil gain to be part of policy decision
NEW YORK, May 22 (Reuters) - Bank of Canada Governor Mark Carney said on Thursday he is braced for a prolonged U.S. slowdown but added that the sharp rise in oil prices will be a consideration in the bank's next monetary policy decision.
"Everyone is aware that commodity prices have moved up substantially," Carney said during a news conference in New York. "When we took our decision in April, we had balanced risks. ... We will take into account what has happened between one and the other and make the decision."
The Bank of Canada has slashed its key overnight lending rate by 150 basis points to 3 percent since last December to shield the economy from a a sharp growth slowdown in the United States, where it sells three-quarters of its exports.
Earlier on Thursday, Carney acknowledged a recent spike in Canadian inflation data.
On the U.S. economy, he said, "our view has not changed. We expect the slowdown in the U.S. to be more marked and prolonged." (Reporting by Lucia Mutikani; Editing by Leslie Adler)
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