BoC projects real GDP growth of 2.5% in 2017

Key highlights from the Bank of Canada statement:

• In Canada, recent data indicate that economic growth has been faster than was expected in the January MPR
• During the rest of this year and into 2018 and 2019, growth in Canada is expected to moderate but remain above potential.
• The Bank now projects real GDP growth of 2 1/2 per cent in 2017 and just below 2 per cent in 2018 and 2019
• CPI inflation is now at the 2 per cent target, largely because of the transitory effects of higher oil prices and carbon pricing measures in two provinces
• The Bank’s three measures of core inflation, on the other hand, have been drifting down in recent quarters and wage growth remains subdued
• There is still considerable uncertainty about the outlook
• The Bank’s Governing Council acknowledges the strength of recent data, some of which is temporary, and is mindful of the significant uncertainties weighing on the outlook