made positive steps forward — here i ’ m thinking about joint initiatives we ’ ve taken with indigenous partners to identify barriers to economic inclusion, and some education and capacity building we ’ ve embarked upon together. now it ’ s time to broaden our engagement and reflect on what we can and should do. we know we have more to learn. and we know that there are many other voices that need to be heard — including those of you gathering with us today and tomorrow. so we ’ ll take the best of the growth and learnings from our recent efforts. and we ’ ll ask our partners to walk alongside us as we take the next steps in our journey. together, we ’ ll define what reconciliation means for the work of the bank of canada — toward a more inclusive and prosperous economy for everyone. conclusion 2 / 3 bis central bankers'speeches as i wrap up my remarks, i want to leave you with some inspiration to guide us over the next two days. and i can ’ t say it any better than this quote from elder commanda ’ s grandfather, william — who was also an elder. he said : “ we must come together with one heart, one mind, one love and one determination. ” i invite you to keep this vision top of mind as we work together to reshape our relationship with indigenous peoples and foster inclusive growth and prosperity. we have much to learn from each other. i am grateful to all our presenters, discussants and participants. and i am confident that, guided by your insight and wisdom as well as the collective spirit of collaboration, this gathering will be an important building block toward better understanding, better operations and better policies. 3 / 3 bis central bankers'speeches

investment in canada. this leaves the level of economic activity lower than the bank had been expecting. • while household spending remains solid, and various indicators in the housing sector continue to rise, slower growth of household credit and higher mortgage interest rates point to a gradual unwinding of household imbalances. • the bank expects that a better balance between domestic and foreign demand will be achieved over time and that growth will become more self - sustaining. but this will take longer than previously projected. • we are expecting investment growth to contribute to a rebound in the rate of labour productivity growth over the next couple of years. however, demographic factors, bis central bankers ’ speeches primarily the aging population, are expected to put a drag on the growth rate of trend labour input. this drag will largely offset the effects of rising investment. this is why we expect that the growth rate of potential output will remain fairly stable at around 2 per cent over the next three years. • real gdp growth is projected to increase from 1. 6 per cent this year to 2. 3 per cent next year and 2. 6 per cent in 2015. the bank expects that the economy will return gradually to full production capacity, around the end of 2015. • inflation in canada has remained low in recent months. this reflects the significant slack in the economy, heightened competition in the retail sector, and some other sector - specific factors. • with larger and more persistent excess supply in the economy, both total cpi and core inflation are expected to return more gradually to 2 per cent, around the end of 2015. • 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 factors, the bank judges that the substantial monetary policy stimulus currently in place remains appropriate and last week 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