Interest Rates to Hold at Current Levels Until mid-2010 – Governor of the Bank of Canada Mark Carney says the central bank is committed to maintaining current interest rates through the first half of 2010, although he noted the challenge of resolving global imbalances stands in the way of convincing economic recovery. Speaking to the International Economic Forum of the Americas Conference in Montreal on Thursday, Carney discussed the recovery and rebuilding of the global economy. He noted that, “It appears likely that the global economy is entering a period of lower potential growth.”It will take time to work off past excesses and to rebuild globalization, he said. Moreover, the composition of global growth will also shift, as the bank expects the U.S. recovery to be relatively mild, and emerging markets to play a bigger role. “The greater proportion of emerging-market growth in the overall growth of the global economy should create new opportunities, particularly by supporting commodity prices,” he said.He also stressed that policymakers must continue to try and restore market confidence, although that too remains a work in progress. “With U.S. banks now raising significant capital to cushion their losses, the negative feedback loop between the financial and real economies has been slowed, though not yet reversed,” he said. “More capital will be required globally; the toxic assets in core banks still need to be addressed; and a host of vital financial markets, such as private-label securitization, must be relaunched. As a result, stabilization of the global financial system remains a precondition for a sustainable recovery, both globally and in Canada.”