Some of these effects are now being unwound owing to the recent sharp fall in some commodity prices, particularly those for energy. In our July Monetary Policy Report Update, we highlighted this possibility as a downside risk for the outlook for inflation in Canada.
Some have pointed to weaker-than-hoped-for export growth and a current account deficit of about 6 per cent of GDP. Others, including ourselves, have worried about a high rate of growth of credit and, until recently, an excessive rate of growth of house prices.