On June 6, Guo-Lun Hui, Bank of Nova Scotia: Bank of Canada Governor Macklem sounds obviously indifferent to the Canadian dollar. When asked about exchange rates and their impact on input-type inflation, he said: 'One of the ways in which monetary policy works is through exchange rates. We do not have an exchange rate target. We believe in flexible exchange rates. Our forecasts are clear, so the market has a good understanding of our ideas, and our ideas will be reflected in the market.' This can be seen as a signal that he will tolerate a further significant depreciation of the Canadian dollar from now on, easily opening up the channel for the Canadian dollar to depreciate to the range of 1.40.