Higher US Fed rates ‘not a major concern’ for C$, BOC’s Macklem says
FILE PHOTO: Bank of Canada Governor Tiff Macklem takes part in a news conference after announcing an interest rate decision in Ottawa, Ontario, Canada April 12, 2023. REUTERS/Blair Gable
OTTAWA (Reuters) – The impact on the Canadian dollar from U.S. Federal Reserve raising interest rates more than the Bank of Canada is not a “major concern” because of a flexible exchange rate and the BOC’s independent monetary policy, Governor Tiff Macklem said on Thursday.
“That is not a major concern. We have an independent monetary policy, we have a flexible exchange rate,” Macklem told a Canadian Senate panel, in response to a question about the impact of higher U.S. interest rates on the Canadian dollar.
“For sure there’ll be some fluctuations in the Canadian dollar .. but, by and large, the flexible exchange rate system works pretty well,” he said.