On those occasions, there has been a tendency to conclude that either the Bank does not have much choice but to follow, or that it must have targets for the Canadian dollar that require interest rates here to move in lock-step with US rates. Neither of these assumptions is correct.
It has been a long journey to reach to this point but the journey has been paved with a great deal of healthy dialogue and “give and take” between the insurance industry and the Central Bank. I believe this was possible because at the end of the day, we share a common goal as we strive towards a more robust and better regulated industry.