BIS Review 50/2000  2  Monetary policy actions are based on economic prospects here at home The next point I would like to stress is that Canadian monetary policy decisions focus, first and foremost, on the economic outlook here in Canada.
So, the critical element is the Bank’s assessment of the balance of forces at work in the Canadian economy, and what this means for future inflation. If domestic demand here in Canada was not particularly strong, greater-than-anticipated US demand for our products would be a compensating element and hardly an issue.