The current gap between the US and Canadian policy interest rates in favour of the former is its largest since the Bank of Canada first went to its Fixed Announcement Date schedule in November 2000. A larger gap in favour of the United States causes a depreciation in the loonie, though its impact has dampened over the years as Canada has transitioned to a more services-based economy. The gap, however, does seem set to widen with the combination of US tariffs and fiscal expansion creating inflationary pressures south of the border.