Macklem says 'there is a limit' on how much Canadian and U.S. rates can diverge
Is there a global interest rate that would impact a Canadian mortgage? Global interest rates do impact Canadian interest rates. Global financial markets are very integrated, so the. And I mean it in Canada, obviously, we’re very integrated with the United States. So the interest rates in the United States have an impact on us because we have our own currency, because we have a flexible exchange rate. We can run our own monetary policy. So our interest rates in Canada don’t need to be the same as the US rate or global rates. But there is a limit to how far they can diverge. We’re certainly, we’re not close to that limit. We have the ability to to, you know, run our own monetary policy geared to what Canadians need.