I hope that I have made it clear today that Canada's monetary policy approach of a flexible exchange rate, anchored by an inflation target, works. There is no need to fix it. Let me now conclude my presentation by giving you our latest reading of the economy.
Recent economic developments Since late last year, the pace of economic expansion in Canada has slowed substantially, mainly because U.S. demand for our products has been much weaker than anticipated. Canadian manufacturers, particularly of motor vehicles, electronic products, and telecommunications equipment, have had to make very significant adjustments.