With this monetary easing and with the strengthening in the pace of economic activity in the second half of the year, we now project annual average growth of between 2 and 3 per cent in 2001. For next year, we see output expanding at a rate slightly above the Bank's estimate of potential output growth of 3 per cent.
Consistent with the Bank's expected path of output growth, core CPI inflation will likely average somewhat below 2 per cent over the remainder of 2001, then move back up to 2 per cent by the end of 2002.