Bank of Canada Deputy Governor Timothy Lane said his country’s dollar may weaken and market interest rates may climb while the Federal Reserve normalizes monetary policy.
Through the transition, the Bank of Canada’s policies will be influenced by export growth to the U.S. and by how investors react to the Fed’s policy shift, Lane said in a speech at Carleton University in Ottawa today.
“Like the Fed, we will balance the risks of acting too soon and stifling burgeoning economic growth against the risks of acting too late and letting inflation overshoot and fueling imbalances in our housing markets,” Lane, 59, said.
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