Our aim is to sustain a strong jobs market with inflation moving gradually up toward our target. We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink. However, while we endeavor to make the path of policy as predictable as possible, the future cannot be known with certainty.
Higher rates are also expected to continue to slow business investment, and weaker foreign demand will weigh on exports. Putting this together, we expect growth in Canada to stall through the middle of this year before picking up later in the year.