A floating exchange rate will continue to be an important part of our monetary policy framework, facilitating the necessary adjustments and sending important price signals. Canadian businesses should continue to be guided by price signals, including those being sent by exchange rates.
Just as businesses reacted to the signals of a weaker Canadian dollar in the 1990s, they should now respond to the signals of a stronger currency against the U.S. dollar, as well as to the changing exchange rates against other currencies.