It is necessary to raise the interest rate to a neutral level to achieve the target level of inflation.

The neutral rate range is 2.5% -3.5%

New trade agreement will reduce uncertainty, increase company confidence and investment

US-China trade conflict puts pressure on growth and commodity prices

Company investment and export prospects improved due to new trade agreement

Adjusting the economy for higher rates and world trade policy will determine further rates of rate increases.

Real GDP will grow by 2.1% in 2018 and 2019, but will slow to 1.9% in 2020

Canadian economy growth is close to potential

Household risks are decreasing, although still high

Temporary factors pushing inflation up will weaken in early 2019

Inflation will remain near the target level of 2% until the end of 2020