That is why  BIS Review 7/1998  -4-  we moved last week to re-balance monetary conditions, and to provide support for the Canadian dollar, by raising the Bank Rate by ½ of a percentage point to 5 per cent. It is probably too early to be drawing conclusions and lessons from this latest episode of world financial turbulence.
Still, when it comes to Canada, it is worth noting the different reaction in domestic financial markets this time compared with our experience during the Mexican currency crisis of early 1995. Back then, the international financial turmoil had the effect of focusing market attention on Canada’s fiscal problems, causing investors to demand higher risk premiums.