480, Monetary and Economic Department, January 2015. - 13 The global financial cycle and policy actions by the Federal Reserve can have important implications for Canada. These are, of course, factored into the Bank of Canada’s monetary policy decisions. As a concrete (but still hypothetical) example, suppose the Federal Reserve were to make an upward adjustment to its policy rate.
Participation in ERM II should thus be seen as a meaningful and flexible framework for increasing convergence with the euro area, and for tackling the challenges faced by accession countries on the road towards the adoption of the euro.