Weaker loonie may not deter Bank of Canada diverging from the Fed

"Although there's a theoretical limit to how far the Bank of Canada can set its own policy rate beneath the Fed funds rate, it's likely well below current levels," said Karl Schamotta, chief market strategist at Corpay. "The exchange rate could weaken if interest differentials were to widen further ... but the passthrough to inflation should be relatively modest." Read the Reuters article here.