Mark Carney remarked Europe was in need of crucial reforms

Bank of Canada Governor Mark Carney stated on Tuesday, that Europe could be up against stagnation, unless it embarks on big reforms and follows Japans current policy to boost economic growth.

Carney said that recession in Europe was held back by fiscal austerity, thin credit policy and low confidence.

Carney, who is expected to take over Bank of England on July 1st, proposed a euro zone banking union, as he saw such measure necessary in order Euro region to take the road towards economic health. He did not refer any policy, which Bank of England was to follow.

It was reported also, that Mark Carney mentioned Bank of Canada had maintained a rate-hike bias during last year in complement to Canadas government policy to restrain high household debt. Reuters imparted, that Bank of Canadas next move would be a rate hike, not a rate cut, regarding growth forecasts. A number of analysts expect a possible rate hike during Q3 2014.