* Carney says recovery still expected later this year

* Suggests C$ rise less of a worry now than in May

* Warns that green shoots no guarantee of growth

* Sees bank capital ratios as too high (Adds quotes, detail from news conference)

By Rod Nickel

REGINA, Saskatchewan, June 18 (Reuters) - Canada's worst recession since the early 1990s is on track to end later this year but policymakers should not let down their guard just yet, Bank of Canada Governor Mark Carney said on Thursday.

Carney reaffirmed the central bank's pledge to keep its key interest rate at a record low of 0.25 percent for another full year. He suggested that he was slightly less concerned than he was earlier this month about the rise in the Canadian dollar, after it appreciated against the U.S. dollar at an unprecedented rate in May, and appeared set to derail the economic recovery.

"Our view has long been that we would see growth by the end of this year in the Canadian economy and that growth would pick up in 2010 ... and we're still on track for that," Carney said.

"The message today was, overall, don't take it for granted," he told reporters following a speech in the agricultural province of Saskatchewan.