We are free to adjust our policy interest rate in the context of Canadian economic conditions—and, in particular, do not need to move in step with the Federal Reserve. And that policy rate is transmitted effectively to stabilize the Canadian economy. Conclusion I began these remarks by noting that Canadians have learned to live with an open capital account. That goes for policy-makers, too.
However, we have agreed at the FSB level that any assessments and possible adjustments thereof need to be ‘evidence-led’ and implemented in a coordinated manner across all relevant jurisdictions. The local adjustments are often as a result of “one size fits all” approach that requires small players to comply with rules that are designed for larger institutions like Global Systemically Important Financial Institutions.