This framework will continue to help the economy adjust to changing economic circumstances, both at home and abroad. Of course, exchange rates don’t always move as smoothly as desired or expected. Still, let me repeat what I have said many times before: having a floating exchange rate to facilitate economic adjustments is by far the best option for the Canadian economy.
Recent Economic Developments Let me now turn to the current economic situation, starting with the outlook for inflation. As we noted in our October Monetary Policy Report, we expect that Canada’s inflation rate will fall over the next few months.