Core inflation is projected to remain just above 1.5 per cent for the rest of 2004, before gradually moving back up to the 2 per cent target by the end of 2005.
Economic growth in Canada should average about 3 ½ per cent through the remainder of 2004 and in the first half of 2005, before easing to 3 per cent in the second half. This would imply average annual growth of about 2 ¾ per cent in 2004 and 3 ½ per cent in 2005.