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BOC Deputy Governor Says Monetary Policy has Dulled Exchange Rate Effect |
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Canadian Economy |
Written by CEP News |
May 05 08 15:04 GMT |
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(CEP News) Ottawa - Bank of Canada Deputy Governor John Murray says Canadian monetary policy has dulled the effect of changing exchange rates on the final prices of imported goods.
In remarks to a Statistics Canada conference in Ottawa, Murray said "accommodative" BOC monetary policy in the 1970s led to price shocks as the dollar value fell. Today's tighter monetary policy allows the central bank to watch for inflationary pricing and "slam it down," essentially dampening the effect of exchange rate fluctuations. It's an ongoing process, however, said Murray, and the Bank of Canada can't assume the country's economy is "bulletproof. We have to remain alert." By Geoff Matthews,
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, edited by Cristina Markham,
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