While far from perfect, a fullblown whole-economy forecast reduces the chance that we would miss something important. As I mentioned at the beginning of this talk, and has been clear for some time, the strong recovery of the economy and high rate of inflation mean that the previous setting of a cash rate near zero per cent is definitely no longer appropriate.
Equally encouraging is the quality of the jobs being created. More than 80 per cent of new jobs are in sectors where the average hourly wage is higher than in manufacturing. Canada's ability to capitalize on higher commodity prices (or to mitigate the impact of lower ones) depends crucially on the continued ability of our economy to adjust.