1 If The Bank Of Canada Leans Against The Wind Which Means Increasing Interest Rates 1697117

1. If the Bank of Canada ‘‘leans against the wind,’’ which means increasing interest rates when the Canadian dollar depreciates and lowering interest rates when the Canadian dollar appreciates, what would this mean for the exposure of

a Canadian residents holding Canadian dollar-denominated bonds?

b US residents holding Canadian-dollar bonds?

 

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