There is evidence that a significant portion of the adjustment in the automotive sector has already taken place, while the adjustment in the housing sector continues. So, in the Bank's judgment, the main downside risk to our inflation projection for Canada does remain, but it has also diminished. Overall, we judge that the risks to our inflation outlook are roughly balanced.
In addition to these risks, we are faced with a great deal of uncertainty about the trend growth rate of potential output in Canada. We are fairly confident in our assessment of the contribution of labour force growth to future potential output. However, there is a lot of uncertainty about the trend rate of productivity growth.