- Expects growth to accelerate in H2 2011, but “considerable external headwinds” are now blowing harder
- Sees Q2 growth minimal or slightly negative
- Persistent strength in the C$ compounding sluggish US demand
- US facing weakest recovery since the great depression
- Euro zone concerns being realized, triggering risk aversion, could prompt further ‘severe dislocation’ in markets
- Will take years to repair bank balance sheets
- BOC will be prudent in any possible withdrawal of monetary stimulus
- Inflation consistent with BOC forecasts
Definitely has a bigger tool box that some other central bank’s, but remains mildly optimistic, despite reiterating some comments from Fin Min Flaherty earlier.
