It will take more than a few months to establish a trend, and then still longer for it to translate into more investment and hiring by companies, but it looks like the natural sequence we’ve been hoping for is getting under way. Conclusion Let me sum up.
It is simply not possible to have a fulsome discussion of the outlook for Canada’s inflation rate and our monetary policy without an understanding of the effects the exchange rate is having on the economy. But trying to control the loonie is off the table, as far as we are concerned at the Bank of Canada.