Bank of Canada Governor Mark Carney warned on Saturday against an emerging consensus among delegates at the World Economic Forum in Davos that the worst of the euro zone debt crisis was over.
Carney said that tail risks — an unlikely event which could prompt a market sell off — are “still out there.”
He said action by the ECB had been reinforced by measures at the national level, both on the fiscal side within Europe and on the structural side. “Clearly neither of those agendas are anywhere close to being finished,” he said.
The situation in the United States was similar, he said. The extraordinary actions of the Federal Reserve had been “crucial but not absolutely decisive.”
Full article: Why Worst Not Over for Europe: Canada Bank Official (CNBC)