Webcast of a press conference by Governor Mark Carney and Senior Deputy Governor Tiff Macklem about the release of the Monetary Policy Report.

Highlights

• The global economic outlook is slightly weaker than projected in October, although global tail risks have diminished.
• The slowdown in the Canadian economy in the second half of 2012 was more pronounced than anticipated and economic activity is expected to be more restrained. The economy is now forecast to return to full capacity in the second half of 2014.
• Following an estimated 1.9 per cent in 2012, the economy is expected to grow by 2.0 per cent in 2013 and 2.7 per cent in 2014.
• Total CPI inflation is expected to remain around 1 per cent in the near term before rising gradually, along with core inflation, to the 2 per cent target in the second half of 2014.
• On 4 December 2012 and 23 January 2013, the Bank maintained the target for the overnight rate at 1 per cent.