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The Canadian dollar continued to lose ground against the U.S. dollar on Wednesday.

In an address to the United Kingdom Chamber of Commerce, Bank of Canada governor Mark Carney stressed the importance of open markets. "The pendulum is currently swinging back from market-dominated financing towards bank-dominated financing. We should not want the pendulum to swing too far," said Mr. Carney. He spoke about the current global financial crisis and its effects on the Canadian financial system, noting that the impact has been significantly less than in many other major economies, in part due to Canada's conservative banking culture and the fact that Canadian banking institutions are healthier then their international peers.

Mr. Carney also stated, "Despite having already cut official interest rates in half over the past year and having a financial sector that is still functioning effectively, some further monetary stimulus will likely be required to achieve the inflation target over the medium term." The Bank of Canada's inflation control target is between one and three per cent.

At 2 p.m. the Canadian dollar was trading lower against the U.S. dollar at 0.8049.

Market report prepared by Bruce Hauser

Accu-Rate Corp.

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