CANADA CENTRAL BANK HEAD SEES MODERATE GROWTH

  Bank of Canada Governor John Crow said he
  expects the Canadian economy will grow moderately in the coming
  year, despite the near flat growth in the final quarter of
  1986.
      "We see moderate growth," Crow told a news conference
  following presentation of the central bank's annual report in
  the House of Commons today.
      He said there were positive signs of growth in the economy,
  particularly the drawdown of business inventories in the fourth
  quarter. Yesterday, Statistics Canada reported gross domestic
  product expanded a slight 0.2 pct in the quarter.
      Crow reiterated the bank's previous statements that
  inflation remains a major priority in setting monetary policy
  and said only zero inflation would be acceptable. Canada's
  inflation rate is currently hovering around the four pct mark.
      The governor said Canada's banking system remains sound
  despite recent concern about exposure by the country's banks in
  debt plagued countries such as Brazil.
      "It (the debt problem) is not a happy development but I
  think it can be overplayed in terms of its impact," Crow told
  reporters.
  

