Private consumption has picked up gradually on the whole, although consumption of services, such as eating and drinking as well as accommodations, has remained at a low level. On the other hand, business fixed investment has been on a declining trend, against the background of deterioration in corporate profits.
It also makes it difficult to pin down the precise timing when Canada will reach full capacity with inflation sustainably at target – it could just as easily be sooner as later than projected. Let me also remind you that there are many uncertain elements and risks to our outlook, which are discussed in the MPR.