(Repeats to Canadian subscribers)
ZURICH, Nov 10 (Reuters) - There is a limit to withdrawing ultra-loose monetary policy, in light of currency markets and economic sluggishness in the United States, Canada's central bank chief told a Swiss paper.
"Evidently, given the weakness of the U.S. economy and the tensions on the foreign exchange markets, there's a limit to withdrawing very accomodative monetary policy," Governor Mark Carney was quoted as saying by daily Le Temps on Wednesday.
"That's why we took a pause at our last meeting."
Carney also said that the Federal Reserve's second bout of quantitative easing to support a flagging recovery in the United States could have an impact on Canada's economy.
He said talk even before the QE was implemented had led to a marked improvement to financial markets, even if a weakening of the dollar had offset some of these positive effects.
Carney was in Switzerland following a meeting of global central bank heads at the Bank for International Settlements in Basel.
(Reporting by Catherine Bosley)