OTTAWA (Reuters) – The impact of Federal Reserve rate hikes versus the Bank of Canada’s impact on the Canadian dollar is not a “major concern” due to a flexible exchange rate and the Bank of Canada’s independent monetary policy, Governor Steve Macklem said on Thursday. A Senate panel, in response to a question about the impact of U.S. rate hikes on the Canadian dollar.
“There will certainly be some volatility in the Canadian dollar … but generally speaking, the flexible exchange rate regime works well,” he said.
