  Despite the challenges that weigh on the global outlook, financial conditions remain very stimulative.   In the short term, economic growth in Canada is expected to slow to modest rates, due to a number of temporary factors.
These include the supply chain disruptions that will dampen automotive production, as well as the drag from adjusting to higher energy prices on consumer spending in Canada and the United States.   Overall, a broad rebalancing of demand in Canada is underway as the economic expansion progresses.