When the Federal Open Market Committee (FOMC) met last month, with the economy not yet showing convincing signs of a sustained pickup in growth, and against the backdrop of our concerns about the implications of a possible substantial decline in inflation, we elected to ease policy another quarter-point.
Only 4% of our exports go to euroland countries and about 7% of our imports come from there. So the direct economic effects on Canada from any developments in Europe related to the move to a common currency are likely to be rather limited, at least in the short run.