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- Bank of Canada removed the word "gradually" from the description of further rate hikes
Bank of Canada removed the word "gradually" from the description of further rate hikes
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It is necessary to raise the interest rate to a neutral level to achieve the target level of inflation.
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The neutral rate range is 2.5% -3.5%
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New trade agreement will reduce uncertainty, increase company confidence and investment
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US-China trade conflict puts pressure on growth and commodity prices
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Company investment and export prospects improved due to new trade agreement
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Adjusting the economy for higher rates and world trade policy will determine further rates of rate increases.
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Real GDP will grow by 2.1% in 2018 and 2019, but will slow to 1.9% in 2020
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Canadian economy growth is close to potential
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Household risks are decreasing, although still high
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Temporary factors pushing inflation up will weaken in early 2019
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Inflation will remain near the target level of 2% until the end of 2020
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