We can’t be entirely certain about the full effects of the budget on the economy, as some will depend on how households react over time. But Governing Council judged that the budget actions will more than offset the negatives from the other three changes I just mentioned. The net effect is that our projected growth profile is generally higher than it was in January.
When it comes to projecting inflation, we must consider our forecast for economic growth relative to the economy’s potential, or capacity. We do a fulsome review of Canada’s economic  BIS central bankers’ speeches  1  potential at this time each year, and this was an especially important part of the Governing Council’s deliberations.