There could be room for more economic growth than projected without inflation rising materially above target

Canadian economy operating close to potential but wage and other data indicate there is still slack in the labor market

Effects of higher C$ on inflation expected to become stronger, with peak impact of -0.5 percentage points in q2 2018

Export growth seen slower than previously due to stronger c$; still expected to make solid contribution to gdp growth

High debt levels mean household spending likely more sensitive to interest rates than in the past

Lowers q3 growth forecast to 1.8 from 2.0 pct, sees 2.5 pct growth in q4; raises 2017 growth forecast to 3.1 pct from 2.8 pct, 2018 to 2.1 pct from 2.0 pct