(Adds details from Q&A, byline)
By Evan Radford
Regina, SASKATCHEWAN, Nov 24 (Reuters) - Canada's economy is
rebounding following a modest contraction in the first half of
the year, boosted by non-energy exports and investment, which
will help growth reach 2-1/2 percent in 2017, Bank of Canada
Deputy Governor Lynn Patterson said on Tuesday.
Patterson said Canada was adjusting to the decline in oil
and commodity prices with lower borrowing rates and a lower
Canadian dollar, and reiterated the growth forecast given by the
bank in October.
Patterson also repeated the central bank's view that
although the global economy has been weaker in 2015, it will
rebound in 2016 and 2017.
Asked about the potential impact if the U.S. Federal Reserve
begins raising interest rates next month, Patterson said if the
Fed does hike, "it's because they feel that the U.S. economy is
in a strong enough position to sustain that rate increase.
"My general feeling would be that if the U.S. is raising
rates, it should be a good thing for Canada," she added.
The United States is Canada's biggest trading partner, and a
stronger economy south of the border is expected to bolster
Canada.
Patterson's remarks were the last scheduled ahead of the
Bank of Canada's interest rate decision in early December. The
bank is widely expected to leave rates on hold at 0.50 percent
after cutting rates twice this year to offset the shock to the
economy from lower oil prices.
(Writing by Leah Schnurr; Editing by Chris Reese and Leslie
Adler)