Indeed, before announcing our interest rate decisions eight times a year, we assess all of the factors that have implications for the balance of demand and supply in the economy, and thus for the conduct of monetary policy. Exchange rate movements are among those factors.
But I must clarify that the response of monetary policy to exchange rate movements depends on the reason for those movements. More importantly, it depends on the overall net effect that such movements and other developments are expected to have on aggregate demand in Canada. In general, there are two types of exchange rate movement.