Bank of Canada says central bank does not need to move in step with U.S. Fed
WATERLOO, Ont. — An increase in interest rates by the U.S. Federal Reserve will affect Canada, but Bank of Canada deputy governor Timothy Lane says that doesn’t mean the central bank is under any pressure to follow suit.
“We are free to adjust our policy interest rate in the context of Canadian economic conditions — and, in particular, do not need to move in step with the Federal Reserve,” Lane said in prepared remarks of a speech delivered Wednesday in Waterloo, Ont.
The comments come amid rising expectations that the U.S. Federal Reserve will raise its key interest rate next month.
Changes by the U.S. Federal Reserve will have some bearing on Canada, Lane said, and the central bank will have to account for them alongside “many other factors” when determining monetary policy here at home.