mark carney : bank of canada ’ s perspective on the current state of the domestic and global economies opening statement by mr mark carney, governor of the bank of canada, to the house of commons standing committee on finance, ottawa, 10 february 2009. * * * good morning. paul and i are pleased to appear before this committee to discuss the bank of canada's perspective on the current state of the domestic and global economies. let me state at the outset that the speed and synchronized nature of the recent global downturn has resulted in a heightened degree of uncertainty, which is evident in the diverse views on the outlook. indeed, it is safe to say that the degree of uncertainty – the range of possible outcomes – is greater than the range of point forecasts. it is in this environment that considerable policy actions are being taken globally : the provision of liquidity to stabilize global financial markets, the write - down of assets and the re - capitalization of institutions, and macroeconomic policy measures to boost aggregate demand. a considered and coherent perspective on the likely success of these policies importantly shapes our view of the outlook for the global and canadian economies. global outlook – sudden, synchronized, and deep recession the outlook for the global economy has deteriorated significantly in recent months. what began last autumn as a relatively controlled slowdown has become a sudden, synchronized, and deep global recession. the proximate cause was the intensification of the global financial crisis owing to both the failures of several prominent global financial institutions and the growing realization that this was a solvency crisis rather than a liquidity crisis. the recession that originated in the united states is now spreading globally through confidence, financial, and trade channels. in the process, the inevitable correction of unsustainably large current account imbalances in several major economies is now under way. for example, we project that the u. s. current account deficit will narrow to 3 per cent of gdp in 2009, about half its size in 2006. the sustainable rebalancing of global domestic demand from deficit countries such as the united states and the united kingdom towards surplus countries such as china and germany will take some time and is likely to dampen the pace of global growth during that period. in the bank's january monetary policy report update, we projected that global economic growth will be tepid this year – just 1. 1 per cent – before rebounding mildly to a below - trend rate of 3. 7 per cent in 2010. as part

. but i am confident that with your commitment and ingenuity, you can move the p2m qr ph initiative forward quickly. another thing on my wish list is the debit pull or direct debit service. this is of great help to customers who, currently, have no choice but to bear the cumbersome process of issuing numerous checks covering their recurring payments such as monthly rental, insurance premium, and other fixed installments. on the part of the payees, this direct debit arrangement will enable them to streamline collection efforts and realize expected cash inflows on time. the last but not the least in my wish list is — like i mentioned earlier — is to make digital payments as the norm. the surge in the volume of pesonet and instapay these past few months indicates the convenience and speed of digital payments. but wait, there ’ s more. i appreciate opportunities for us to exchange updates, views, concerns, and any matter that we need to discuss in a more spontaneous manner to facilitate the achievement of our targets. i look forward to having a periodic dialogue with the ppmi leadership. together, let ’ s transform our payments system into a digital world. let ’ s keep working together to ensure that “ maria ” never has to make that choice ever again — pandemic or no pandemic. i hope maria story tugs at your heartstrings in a different way. may her story push us to continue to find ways to make a difference in the lives of our countrymen. at a time where our country is struggling to rise above this once - in - a - lifetime pandemic, the ppmi has the power to ensure that no filipino is left behind. mabuhay ang ppmi! thank you very much! 3 / 3 bis central bankers'speeches