An escalation of trade conflicts would of course pose a downside risk to the world, but progress in resolving these conflicts would represent an upside risk. Here in Canada, we are not immune to these global developments. But we also have some issues of our own to deal with. Governing Council focused on four.
First, as discussed in some detail in our MPR in January, Canada’s oil sector remains under considerable stress. Since January, oil prices have firmed, including those prices received by our western producers. But limited access to markets remains a significant source of drag and uncertainty. This has led to another downward revision in investment intentions in the sector.