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CANADA: BOC Deputy Governor Larry Schembri said output gap is
essentially closed, projecting low unemployment rate and
hitting targeted inflation rate.
- Economy has welcome degree of resilience to negative shocks.
- BOC will keep monetary policy appropriate to our own circumstances.
- There has been weakness in consumption and investment; economy will
slow in the second half of this year.
- Trade war and uncertainty is biggest risk to forecast.
- International trade uncertainty could cause complex shock.
- Rise in income and lower interest rate results in unexpected
strength in housing market.
-Schembri gave speech Thursday following Wednesday's BOC decision
to hold its key interest rate at 1.75%.