TY - GEN AB - In the April Monetary Policy Report, the Bank noted that inflation was well above its 2 per cent target and that short-term inflation expectations had edged up. Although inflation was being pushed up by special factors, particularly insurance premiums and energy costs, there were also signs that strong domestic demand was working to broaden price pressures. In April, we projected that Canadian economic growth would average 2 1/2 per cent in the first three quarters of the year and that core inflation would fall to 2 per cent by early 2004. As it turns out, growth has been weaker than expected and is now likely to average just over 1 1/2 per cent in the first three quarters of the year. So the Bank now estimates that there is more slack in the economy than was projected in April. Moreover, the decline in core inflation occurred earlier, and has been more pronounced, than we had projected. As well, virtually all measures of inflation expectations have decreased since April. DA - 2003 ID - 4018 KW - Monetary policy KW - Politique monétaire L1 - https://www.oar-rao.bank-banque-canada.ca/record/4018/files/mproct03.pdf L2 - https://www.oar-rao.bank-banque-canada.ca/record/4018/files/mproct03.pdf L4 - https://www.oar-rao.bank-banque-canada.ca/record/4018/files/mproct03.pdf LA - eng LK - https://www.oar-rao.bank-banque-canada.ca/record/4018/files/mproct03.pdf N2 - In the April Monetary Policy Report, the Bank noted that inflation was well above its 2 per cent target and that short-term inflation expectations had edged up. Although inflation was being pushed up by special factors, particularly insurance premiums and energy costs, there were also signs that strong domestic demand was working to broaden price pressures. In April, we projected that Canadian economic growth would average 2 1/2 per cent in the first three quarters of the year and that core inflation would fall to 2 per cent by early 2004. As it turns out, growth has been weaker than expected and is now likely to average just over 1 1/2 per cent in the first three quarters of the year. So the Bank now estimates that there is more slack in the economy than was projected in April. Moreover, the decline in core inflation occurred earlier, and has been more pronounced, than we had projected. As well, virtually all measures of inflation expectations have decreased since April. PY - 2003 SN - 1201-8783 T1 - Monetary Policy ReportOctober 2003 TI - Monetary Policy ReportOctober 2003 UR - https://www.oar-rao.bank-banque-canada.ca/record/4018/files/mproct03.pdf Y1 - 2003 ER -