stephen s poloz : summary of the latest monetary policy report opening statement by mr stephen s poloz, governor of the bank of canada, at the press conference following the release of the monetary policy report, ottawa, ontario, 17 july 2013. * * * good morning. tiff and i are pleased to be here with you today to discuss the july monetary policy report, which the bank published this morning. • global economic growth remains modest, although the pace of economic activity varies significantly across the major economies. • the u. s. economic expansion is proceeding at a moderate pace. the continued strengthening in private demand is being partly offset by the impact of fiscal consolidation. • in japan, fiscal and monetary policy stimulus is contributing to a rapid recovery in economic growth. • in contrast, economic activity in the euro area remains weak. • in china and other emerging market economies, real gdp growth has slowed, although it is stronger than in the advanced economies. this is exerting downward pressure on global commodity prices. • and, as a consequence, the bank has downgraded slightly its global growth forecast. • the global economy is still expected to pick up in 2014 and 2015. • in canada, economic growth is expected to be choppy in the near term, owing to unusual temporary factors. the overall outlook is little changed from the bank ’ s projection in april. • annual gdp growth is projected to average 1. 8 per cent in 2013 and 2. 7 per cent in both 2014 and 2015, supported by very accommodative financial conditions. • despite ongoing competitiveness challenges, exports are projected to gather momentum. this should boost confidence and lead to increasingly solid growth in business investment. the economy will also be supported by continued growth in consumer spending, while further modest declines in residential investment are expected. • growth in real gdp is projected to be sufficient to absorb the current material excess capacity in the economy, closing the output gap around mid - 2015, as projected in april. • inflation has been low in recent months and is expected to remain subdued in the near term. • the weakness in core inflation reflects persistent material excess capacity, heightened competitive pressures on retailers, relatively subdued wage increases, and some temporary sector - specific factors. total cpi inflation has also been restrained by declining mortgage interest costs. • as the economy gradually returns to full capacity and with inflation expectations well - anchored, both core and total cpi inflation are expected to return to 2 per cent around mid - 2015. bis central

david dodge : economic and financial trends in the context of canada ’ s inflation - control strategy opening statement by mr david dodge, governor of the bank of canada, on the release of the monetary policy report update, 24 july 2002. * * * today, we published our update to the april monetary policy report, in which we discuss economic and financial trends in the context of canada ’ s inflation - control strategy. canada ’ s economic recovery, which began in the last quarter of 2001, gathered momentum in the first half of 2002. over the period to the end of 2003, the bank projects continued solid economic expansion at an annual rate of 3 to 4 per cent. this will result in growth of close to 3 1 / 2 per cent on an annual average basis in 2002 and in 2003. both the total and core rates of inflation are projected to be slightly above 2 per cent in the second half of 2002, before steadying out at close to 2 per cent in 2003. given that the canadian economy grew at a faster pace than anticipated in the first half of 2002, there is now less excess capacity than was projected in our april report. the economy is expected to be operating at full capacity in early 2003 - sooner than previously anticipated. in light of these developments, the bank has continued to reduce the amount of monetary stimulus in the economy, raising the target for the overnight interest rate by 25 basis points on three occasions in april, june, and july - to bring the rate to 2 3 / 4 per cent. it remains the bank ’ s view that the underlying economic situation will require further reductions in the amount of monetary stimulus. the timing and pace of policy adjustments will depend on the strength of the various factors at play and their implications for pressures on capacity, and thus on inflation. there are both upside and downside risks to the outlook for canadian economic growth. on the positive side, growth of domestic demand could turn out to be stronger than projected because of the substantial amount of monetary stimulus still in place. on the negative side, there are the uncertainties associated with global corporate and financial market developments and their potential effects on confidence and world economic growth. at this time, the risks to our projected rate of growth of 3 to 4 per cent growth appear to be balanced. as we go forward, the bank will remain focused on taking actions to achieve the 2 per cent inflation target. keeping inflation low and stable is the best contribution that monetary policy can make to sustained economic growth in canada.