We identified both upside and downside risks to our inflation projection, noting that these appeared to be roughly balanced. The main upside risk related to the strength of household spending. The main downside risks related to the effects on the Canadian economy of the stronger Canadian dollar and of the ongoing adjustment in the U.S. housing sector.
*  *  *  Now that the recent emerging markets crisis has been resolved - or at least is well on its way toward resolution - it is appropriate to step back and assess what we have learned from this episode.