Canada's economy is the strongest among the world's major industrialized countries, Carney told a Senate finance committee hearing Thursday, and continuing monetary stimulus will bring it back into balance within the next two years.

The BOC governor said Canada will continue to set monetary policy aimed at keeping inflation at 2%, a level that it has maintained consistently for 15 years.

The inflation picture in Canada is unique, Carney said, because the high value of the dollar has held down prices for food and automobiles while other savings are working their way through the system.

However, he declined comment on what the value of the Canadian dollar should be, saying that comments from the central bank could disrupt the market. The country will continue to follow a flexible exchange rate mechanism, Carney added.

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