- d printing had not been invented yet. ten years ago, there were no smartphone app developers, or cloud computing engineers or social media managers. it is human nature to focus on the negative. so, when we think about autonomous vehicles, for example, people tend to dwell on the jobs that will begin to disappear for truckers and taxi drivers. clearly, governments need to support people who bear the brunt of technological change. at the same time, we need to remember the positives — all the new jobs that will be created and the people who will be needed to build these vehicles, to write their software, to maintain the 5 / 6 bis central bankers'speeches fleets once they are built, to redesign and construct roads, to coordinate traffic and so on. what is more, truly creative entrepreneurs will think about new ways to apply this technology, for example, to boost independence and productivity for many people living with disabilities. beyond this, we also need to remember the income - generating effect of these new jobs. the higher incomes that are generated create demand, not just in the new sectors but also for other goods and services throughout the economy, including such ordinary things as housing and home renovations. this income - generating effect is likely one factor behind canada ’ s strong job growth last year in sectors such as manufacturing and construction — jobs where the required skills are not too far removed from those required in sectors of the economy that are being disrupted. the bottom line is this : throughout history, technological advances have always led to rising productivity and living standards, and they have always created more jobs than they destroyed. this is not to understate the pain that disruption can cause for individuals — we owe it to them to work hard to create pathways forward, so all can participate in the evolving economy. conclusion it is time for me to conclude. the bank of canada has plenty of reasons to care about the state of the labour market. it has become a good deal healthier over the past year or so, but we still see some slack remaining. we expect to see increased investment — both in existing and brand new companies — as well as labour market churn create more supply through higher productivity and employment. however, these uncertain processes entail both upside and downside risks to inflation, and our monetary policy remains particularly data - dependent as we balance those risks. of course, we are watching issues other than the state of the labour market and the evolution of supply. yet, even with all the unknowns

advanced economies. greater global demand would in turn translate into higher exports for canada and rising commodity prices, which would support higher incomes and spending. • a second important external risk is a more protracted and difficult euro - area recovery. since canada ’ s direct trade links to the euro area are limited, the effects would be felt mainly through confidence and financial channels, as well as through indirect trade links. • we have also identified three important domestic risks. bis central bankers ’ speeches • first, there is a possibility that, for a given projection for global growth, exports could be even weaker than assumed. this is a risk that could materialize if competitiveness challenges were greater than anticipated and would result in an even larger loss of market share. • second, there is a risk on the upside that, as confidence returns, domestic momentum builds faster than expected. once the recovery in foreign demand becomes more solidly entrenched, and with domestic demand continuing to grow at a moderate pace, business sentiment could improve rapidly. • the third important domestic risk remains a disorderly unwinding of household sector imbalances, which are still elevated. the continued slowing in household credit and the rise in mortgage interest rates point to a gradual unwinding of household imbalances, but recent data suggest some risk of renewed momentum in the housing market. • although the bank considers the risks around its projected inflation path to be balanced, the fact that inflation has been persistently below target means that downside risks to inflation assume increasing importance. however, the bank must also take into consideration the risk of exacerbating already - elevated household imbalances. • weighing these considerations, the bank judges that the substantial monetary policy stimulus currently in place remains appropriate and today decided to maintain the target for the overnight rate at 1 per cent. with that, tiff and i would be pleased to take your questions. bis central bankers ’ speeches