Having said that, the US has been perceived as being an aggressive rate hiker and as you probably know the C$ has been weakening again the US$ this year. The US has also been perceived as having a very strong economy that continues to perform very well.

To add further confusion, central banks have been pausing rate hikes, and may even start to consider cutting rates again next year. ( as peak inflation might be over possibly!) - does this change anything?

The high level of inflation that has developed in many developed countries such as Canada, the US and the UK is caused by a number of factors ( you have all touched on them already in previous LAs - supply chain log-jams, The Russia/Ukraine war, a tight labour market) and we can look further at them this week, but for the moment think about pricing parity in a world of inflation and if everyone is raising rates then does anything change?

I have deliberately kept this very simple, but I want all of you to have some understanding of these different aspects and how they interlink..... if you want more from me, I am happy to provide it.

REF:

Bank of Canada and the Government

https://lop.parl.ca/sites/PublicWebsite/default/en_CA/ResearchPublications/201837E

This is the Q3 Report:

https://www.bankofcanada.ca/2023/11/quarterly-financial-report-third-quarter-2023/

And more recently:

https://www.bankofcanada.ca/2023/10/mpr-2023-10-25/

Please provide a brief and comprehensive response with IN-TEXT Citations. Thanks!