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THOUGH
THOUGH
THOUGH IN SHORT, THE CANADIAN ECONOMY
THOUGH IN SHORT, THE CANADIAN ECONOMY
THOUGH IN SHORT, THE CANADIAN ECONOMY LAST YEAR WAS IN A STRONGER POS
IN SHORT, THE CANADIAN ECONOMY LAST YEAR WAS IN A STRONGER POS
IN SHORT, THE CANADIAN ECONOMY LAST YEAR WAS IN A STRONGER POS THAN WE PREVIOUSLY BELIEVED,
LAST YEAR WAS IN A STRONGER POS THAN WE PREVIOUSLY BELIEVED,
LAST YEAR WAS IN A STRONGER POS THAN WE PREVIOUSLY BELIEVED, OPERATING CLOSE TO CAPACITY WITH
THAN WE PREVIOUSLY BELIEVED, OPERATING CLOSE TO CAPACITY WITH
THAN WE PREVIOUSLY BELIEVED, OPERATING CLOSE TO CAPACITY WITH INFLATION NEAR TARGET.
OPERATING CLOSE TO CAPACITY WITH INFLATION NEAR TARGET.
OPERATING CLOSE TO CAPACITY WITH INFLATION NEAR TARGET. MUCH OF GOVERNING COUNCIL'S
INFLATION NEAR TARGET. MUCH OF GOVERNING COUNCIL'S
INFLATION NEAR TARGET. MUCH OF GOVERNING COUNCIL'S DELIBERATIONS FOCUSED ON HOW
MUCH OF GOVERNING COUNCIL'S DELIBERATIONS FOCUSED ON HOW
MUCH OF GOVERNING COUNCIL'S DELIBERATIONS FOCUSED ON HOW PERSISTENT THE RECENT SLOWDOWN
DELIBERATIONS FOCUSED ON HOW PERSISTENT THE RECENT SLOWDOWN
DELIBERATIONS FOCUSED ON HOW PERSISTENT THE RECENT SLOWDOWN IN THE DOMESTIC ECONOMY MIGHT
PERSISTENT THE RECENT SLOWDOWN IN THE DOMESTIC ECONOMY MIGHT
PERSISTENT THE RECENT SLOWDOWN IN THE DOMESTIC ECONOMY MIGHT BE
IN THE DOMESTIC ECONOMY MIGHT BE
IN THE DOMESTIC ECONOMY MIGHT BE THE BANK'S OUTLOOK IS FOR A
BE THE BANK'S OUTLOOK IS FOR A
BE THE BANK'S OUTLOOK IS FOR A REBOUND IN GROWTH TO ABOUT 1.3%
THE BANK'S OUTLOOK IS FOR A REBOUND IN GROWTH TO ABOUT 1.3%
THE BANK'S OUTLOOK IS FOR A REBOUND IN GROWTH TO ABOUT 1.3% IN THE FIRST QUARTER AND A
REBOUND IN GROWTH TO ABOUT 1.3% IN THE FIRST QUARTER AND A
REBOUND IN GROWTH TO ABOUT 1.3% IN THE FIRST QUARTER AND A PICKUP TO ABOUT 2% AFTER THAT.
IN THE FIRST QUARTER AND A PICKUP TO ABOUT 2% AFTER THAT.
IN THE FIRST QUARTER AND A PICKUP TO ABOUT 2% AFTER THAT. SUPPORTING THIS OUTLOOK IS THE
PICKUP TO ABOUT 2% AFTER THAT. SUPPORTING THIS OUTLOOK IS THE
PICKUP TO ABOUT 2% AFTER THAT. SUPPORTING THIS OUTLOOK IS THE VIEW THAT THE SLOWDOWN IN LATE
SUPPORTING THIS OUTLOOK IS THE VIEW THAT THE SLOWDOWN IN LATE
SUPPORTING THIS OUTLOOK IS THE VIEW THAT THE SLOWDOWN IN LATE 2019 MAY REFLECT A GREATER
VIEW THAT THE SLOWDOWN IN LATE 2019 MAY REFLECT A GREATER
VIEW THAT THE SLOWDOWN IN LATE 2019 MAY REFLECT A GREATER PASS-THROUGH FROM INTERNATIONAL
2019 MAY REFLECT A GREATER PASS-THROUGH FROM INTERNATIONAL
2019 MAY REFLECT A GREATER PASS-THROUGH FROM INTERNATIONAL DEVELOPMENTS THAN PREVIOUSED.
PASS-THROUGH FROM INTERNATIONAL DEVELOPMENTS THAN PREVIOUSED.
PASS-THROUGH FROM INTERNATIONAL DEVELOPMENTS THAN PREVIOUSED. IN WHICH CASE, THE RECENT PICKUP
DEVELOPMENTS THAN PREVIOUSED. IN WHICH CASE, THE RECENT PICKUP
DEVELOPMENTS THAN PREVIOUSED. IN WHICH CASE, THE RECENT PICKUP IN GLOBAL INDICATORS IS
IN WHICH CASE, THE RECENT PICKUP IN GLOBAL INDICATORS IS
IN WHICH CASE, THE RECENT PICKUP IN GLOBAL INDICATORS IS REASSURING.
IN GLOBAL INDICATORS IS REASSURING.
IN GLOBAL INDICATORS IS REASSURING. ANOTHER SUPPORTIVE
REASSURING. ANOTHER SUPPORTIVE
REASSURING. ANOTHER SUPPORTIVE INTERPRETATION IS THAT SOME
ANOTHER SUPPORTIVE INTERPRETATION IS THAT SOME
ANOTHER SUPPORTIVE INTERPRETATION IS THAT SOME GROWTH INDICATORS WERE AFFECTED
INTERPRETATION IS THAT SOME GROWTH INDICATORS WERE AFFECTED
INTERPRETATION IS THAT SOME GROWTH INDICATORS WERE AFFECTED BY TEMPORARY FACTORS.
GROWTH INDICATORS WERE AFFECTED BY TEMPORARY FACTORS.
GROWTH INDICATORS WERE AFFECTED BY TEMPORARY FACTORS. THIS INCLUDED AN EARLY WINTER ON
BY TEMPORARY FACTORS. THIS INCLUDED AN EARLY WINTER ON
BY TEMPORARY FACTORS. THIS INCLUDED AN EARLY WINTER ON THE PRAIRIES, PIPELINE SHUTDOWNS
THIS INCLUDED AN EARLY WINTER ON THE PRAIRIES, PIPELINE SHUTDOWNS
THIS INCLUDED AN EARLY WINTER ON THE PRAIRIES, PIPELINE SHUTDOWNS AND STRIKES.
THE PRAIRIES, PIPELINE SHUTDOWNS AND STRIKES.
THE PRAIRIES, PIPELINE SHUTDOWNS AND STRIKES. A POSITIVE READING ON EMPLOYMENT
AND STRIKES. A POSITIVE READING ON EMPLOYMENT
AND STRIKES. A POSITIVE READING ON EMPLOYMENT IN DECEMBER REINFORCED THIS
A POSITIVE READING ON EMPLOYMENT IN DECEMBER REINFORCED THIS
A POSITIVE READING ON EMPLOYMENT IN DECEMBER REINFORCED THIS INTERPRETATION ALONG WITH THE
IN DECEMBER REINFORCED THIS INTERPRETATION ALONG WITH THE
IN DECEMBER REINFORCED THIS INTERPRETATION ALONG WITH THE UNDERSTANDING THAT ON-LINE SALES
INTERPRETATION ALONG WITH THE UNDERSTANDING THAT ON-LINE SALES
INTERPRETATION ALONG WITH THE UNDERSTANDING THAT ON-LINE SALES WERE VERY STRONG THIS PAST
UNDERSTANDING THAT ON-LINE SALES WERE VERY STRONG THIS PAST
UNDERSTANDING THAT ON-LINE SALES WERE VERY STRONG THIS PAST HOLIDAY SEASON AND MUCH OF THESE
WERE VERY STRONG THIS PAST HOLIDAY SEASON AND MUCH OF THESE
WERE VERY STRONG THIS PAST HOLIDAY SEASON AND MUCH OF THESE ARE NOT CAPTURED IN CANADIAN
HOLIDAY SEASON AND MUCH OF THESE ARE NOT CAPTURED IN CANADIAN
HOLIDAY SEASON AND MUCH OF THESE ARE NOT CAPTURED IN CANADIAN RETAIL SALES DATA.
ARE NOT CAPTURED IN CANADIAN RETAIL SALES DATA.
ARE NOT CAPTURED IN CANADIAN RETAIL SALES DATA. COUNTERING THIS VIEW WOULD BE
RETAIL SALES DATA. COUNTERING THIS VIEW WOULD BE
RETAIL SALES DATA. COUNTERING THIS VIEW WOULD BE THE POSSIBILITY THAT CANADIAN
COUNTERING THIS VIEW WOULD BE THE POSSIBILITY THAT CANADIAN
COUNTERING THIS VIEW WOULD BE THE POSSIBILITY THAT CANADIAN CONSUMERS HAVE TURNED MORE
THE POSSIBILITY THAT CANADIAN CONSUMERS HAVE TURNED MORE
THE POSSIBILITY THAT CANADIAN CONSUMERS HAVE TURNED MORE CAUTIOUS.
CONSUMERS HAVE TURNED MORE CAUTIOUS.
CONSUMERS HAVE TURNED MORE CAUTIOUS. PERHAPS IN RESPONSE TO GLOBAL
CAUTIOUS. PERHAPS IN RESPONSE TO GLOBAL
CAUTIOUS. PERHAPS IN RESPONSE TO GLOBAL POLITICAL DEVELOPMENTS OR
PERHAPS IN RESPONSE TO GLOBAL POLITICAL DEVELOPMENTS OR
PERHAPS IN RESPONSE TO GLOBAL POLITICAL DEVELOPMENTS OR ELEVATED HOUSEHOLD DEBT OR
POLITICAL DEVELOPMENTS OR ELEVATED HOUSEHOLD DEBT OR
POLITICAL DEVELOPMENTS OR ELEVATED HOUSEHOLD DEBT OR LAYOFFS IN THE MANUFACTURING
ELEVATED HOUSEHOLD DEBT OR LAYOFFS IN THE MANUFACTURING
ELEVATED HOUSEHOLD DEBT OR LAYOFFS IN THE MANUFACTURING SECTOR AND IN THE PUBLIC SERVICE
LAYOFFS IN THE MANUFACTURING SECTOR AND IN THE PUBLIC SERVICE
LAYOFFS IN THE MANUFACTURING SECTOR AND IN THE PUBLIC SERVICE IN CERTAIN PROVINCES.
SECTOR AND IN THE PUBLIC SERVICE IN CERTAIN PROVINCES.
SECTOR AND IN THE PUBLIC SERVICE IN CERTAIN PROVINCES. NOW, THIS INTERPRETATION WAS
IN CERTAIN PROVINCES. NOW, THIS INTERPRETATION WAS
IN CERTAIN PROVINCES. NOW, THIS INTERPRETATION WAS REINFORCED BY NEGATIVE CONSUMER
NOW, THIS INTERPRETATION WAS REINFORCED BY NEGATIVE CONSUMER
NOW, THIS INTERPRETATION WAS REINFORCED BY NEGATIVE CONSUMER CONFIDENCE DATA DURING THE
REINFORCED BY NEGATIVE CONSUMER CONFIDENCE DATA DURING THE
REINFORCED BY NEGATIVE CONSUMER CONFIDENCE DATA DURING THE FOURTH.
CONFIDENCE DATA DURING THE FOURTH.
CONFIDENCE DATA DURING THE FOURTH. HIGHER ESTIMATES OF THE
FOURTH. HIGHER ESTIMATES OF THE
FOURTH. HIGHER ESTIMATES OF THE HOUSEHOLD SAVINGS RATE AND SOFT
HIGHER ESTIMATES OF THE HOUSEHOLD SAVINGS RATE AND SOFT
HIGHER ESTIMATES OF THE HOUSEHOLD SAVINGS RATE AND SOFT CONSUMER CREDIT GROWTH.
HOUSEHOLD SAVINGS RATE AND SOFT CONSUMER CREDIT GROWTH.
HOUSEHOLD SAVINGS RATE AND SOFT CONSUMER CREDIT GROWTH. SO THESE INGREDIENTS MIGHT POINT
CONSUMER CREDIT GROWTH. SO THESE INGREDIENTS MIGHT POINT
CONSUMER CREDIT GROWTH. SO THESE INGREDIENTS MIGHT POINT TO A MORE PROLONGED CONSUMER
SO THESE INGREDIENTS MIGHT POINT TO A MORE PROLONGED CONSUMER
SO THESE INGREDIENTS MIGHT POINT TO A MORE PROLONGED CONSUMER SLOWDOWN.
TO A MORE PROLONGED CONSUMER SLOWDOWN.
TO A MORE PROLONGED CONSUMER SLOWDOWN. THIS IS NOT OUR FORECAST.
SLOWDOWN. THIS IS NOT OUR FORECAST.
SLOWDOWN. THIS IS NOT OUR FORECAST. BUT WE AGREED TO MONITOR THE
THIS IS NOT OUR FORECAST. BUT WE AGREED TO MONITOR THE
THIS IS NOT OUR FORECAST. BUT WE AGREED TO MONITOR THE DATA CLOSELY WITH THIS DOWNSIDE
BUT WE AGREED TO MONITOR THE DATA CLOSELY WITH THIS DOWNSIDE
BUT WE AGREED TO MONITOR THE DATA CLOSELY WITH THIS DOWNSIDE RISK IN MIND.
DATA CLOSELY WITH THIS DOWNSIDE RISK IN MIND.
DATA CLOSELY WITH THIS DOWNSIDE RISK IN MIND. IN THIS RESPECT, WEEKLY SURVEY
RISK IN MIND. IN THIS RESPECT, WEEKLY SURVEY
RISK IN MIND. IN THIS RESPECT, WEEKLY SURVEY DATA SUGGESTS THAT CONSUMER
IN THIS RESPECT, WEEKLY SURVEY DATA SUGGESTS THAT CONSUMER
IN THIS RESPECT, WEEKLY SURVEY DATA SUGGESTS THAT CONSUMER CONFIDENCE MAY HAVE BOTTOMED
DATA SUGGESTS THAT CONSUMER CONFIDENCE MAY HAVE BOTTOMED
DATA SUGGESTS THAT CONSUMER CONFIDENCE MAY HAVE BOTTOMED SOME TIME IN DECEMBER.
CONFIDENCE MAY HAVE BOTTOMED SOME TIME IN DECEMBER.
CONFIDENCE MAY HAVE BOTTOMED SOME TIME IN DECEMBER. ALSO, HOUSING REMAINS SOLID IN
SOME TIME IN DECEMBER. ALSO, HOUSING REMAINS SOLID IN
SOME TIME IN DECEMBER. ALSO, HOUSING REMAINS SOLID IN MOST REGIONS OF THE COUNTRY,
ALSO, HOUSING REMAINS SOLID IN MOST REGIONS OF THE COUNTRY,
ALSO, HOUSING REMAINS SOLID IN MOST REGIONS OF THE COUNTRY, EVEN IF IT IS GROWING LESS
MOST REGIONS OF THE COUNTRY, EVEN IF IT IS GROWING LESS
MOST REGIONS OF THE COUNTRY, EVEN IF IT IS GROWING LESS QUICKLY THAN IT DID EARLIER IN
EVEN IF IT IS GROWING LESS QUICKLY THAN IT DID EARLIER IN
EVEN IF IT IS GROWING LESS QUICKLY THAN IT DID EARLIER IN 2019.
QUICKLY THAN IT DID EARLIER IN 2019.
QUICKLY THAN IT DID EARLIER IN 2019. IN OCTOBER, WE DELIBERATED
2019. IN OCTOBER, WE DELIBERATED
2019. IN OCTOBER, WE DELIBERATED WHETHER THE DOWN SIDE RISKS
IN OCTOBER, WE DELIBERATED WHETHER THE DOWN SIDE RISKS
IN OCTOBER, WE DELIBERATED WHETHER THE DOWN SIDE RISKS COMING FROM OUTSIDE CANADA WERE
WHETHER THE DOWN SIDE RISKS COMING FROM OUTSIDE CANADA WERE
WHETHER THE DOWN SIDE RISKS COMING FROM OUTSIDE CANADA WERE SUFFICIENT TO WARRANT A MOVE TO
COMING FROM OUTSIDE CANADA WERE SUFFICIENT TO WARRANT A MOVE TO
COMING FROM OUTSIDE CANADA WERE SUFFICIENT TO WARRANT A MOVE TO LOWER INTEREST RATES.
SUFFICIENT TO WARRANT A MOVE TO LOWER INTEREST RATES.
SUFFICIENT TO WARRANT A MOVE TO LOWER INTEREST RATES. AT THAT TIME, WE CONCLUDED THAT
LOWER INTEREST RATES. AT THAT TIME, WE CONCLUDED THAT
LOWER INTEREST RATES. AT THAT TIME, WE CONCLUDED THAT THEY WERE NOT.
AT THAT TIME, WE CONCLUDED THAT THEY WERE NOT.
AT THAT TIME, WE CONCLUDED THAT THEY WERE NOT. GIVEN THE TRADEOFF THAT WE FACED
THEY WERE NOT. GIVEN THE TRADEOFF THAT WE FACED
THEY WERE NOT. GIVEN THE TRADEOFF THAT WE FACED AGAINST POTENTIALLY FUELLING
GIVEN THE TRADEOFF THAT WE FACED AGAINST POTENTIALLY FUELLING
GIVEN THE TRADEOFF THAT WE FACED AGAINST POTENTIALLY FUELLING INCREASED FINANCIAL
AGAINST POTENTIALLY FUELLING INCREASED FINANCIAL
INCREASED FINANCIAL
INCREASED FINANCIAL VULNERABILIT DECISION, WE BEGAN
VULNERABILIT DECISION, WE BEGAN
VULNERABILIT DECISION, WE BEGAN EXERCISE WITH REDUCED DOWN SIDE
VULNERABILIT DECISION, WE BEGAN EXERCISE WITH REDUCED DOWN SIDE
VULNERABILIT DECISION, WE BEGAN EXERCISE WITH REDUCED DOWN SIDE RISKS COMING FROM OUTSIDE OF
EXERCISE WITH REDUCED DOWN SIDE RISKS COMING FROM OUTSIDE OF
EXERCISE WITH REDUCED DOWN SIDE RISKS COMING FROM OUTSIDE OF CANADA, AS EXPECTED, BUT AT THE
RISKS COMING FROM OUTSIDE OF CANADA, AS EXPECTED, BUT AT THE
RISKS COMING FROM OUTSIDE OF CANADA, AS EXPECTED, BUT AT THE SAME TIME, A CRYSTALLIZATION OF
CANADA, AS EXPECTED, BUT AT THE SAME TIME, A CRYSTALLIZATION OF
CANADA, AS EXPECTED, BUT AT THE SAME TIME, A CRYSTALLIZATION OF SOME DOMESTIC DOWN SIDE RISKS.
SAME TIME, A CRYSTALLIZATION OF SOME DOMESTIC DOWN SIDE RISKS.
SAME TIME, A CRYSTALLIZATION OF SOME DOMESTIC DOWN SIDE RISKS. AFTER TAKING THESE DEVELOPMENTS
SOME DOMESTIC DOWN SIDE RISKS. AFTER TAKING THESE DEVELOPMENTS
SOME DOMESTIC DOWN SIDE RISKS. AFTER TAKING THESE DEVELOPMENTS ON BOARD, OUR ANALYSIS SUGGESTED
AFTER TAKING THESE DEVELOPMENTS ON BOARD, OUR ANALYSIS SUGGESTED
AFTER TAKING THESE DEVELOPMENTS ON BOARD, OUR ANALYSIS SUGGESTED THAT OVERALL EXCESS CAPACITY IN
ON BOARD, OUR ANALYSIS SUGGESTED THAT OVERALL EXCESS CAPACITY IN
ON BOARD, OUR ANALYSIS SUGGESTED THAT OVERALL EXCESS CAPACITY IN THE CANADIAN ECONOMYD.
THAT OVERALL EXCESS CAPACITY IN THE CANADIAN ECONOMYD.
THAT OVERALL EXCESS CAPACITY IN THE CANADIAN ECONOMYD. WHICH WILL BRING A DEGREE OF
THE CANADIAN ECONOMYD. WHICH WILL BRING A DEGREE OF
THE CANADIAN ECONOMYD. WHICH WILL BRING A DEGREE OF DOWNWARD PRESSURE ON INFLATION
WHICH WILL BRING A DEGREE OF DOWNWARD PRESSURE ON INFLATION
WHICH WILL BRING A DEGREE OF DOWNWARD PRESSURE ON INFLATION OVER THE PROJECTION HORIZON.
DOWNWARD PRESSURE ON INFLATION OVER THE PROJECTION HORIZON.
DOWNWARD PRESSURE ON INFLATION OVER THE PROJECTION HORIZON. YOU CAN SEE THIS IN CHART 15 OF
OVER THE PROJECTION HORIZON. YOU CAN SEE THIS IN CHART 15 OF
OVER THE PROJECTION HORIZON. YOU CAN SEE THIS IN CHART 15 OF THE MONETARY POLICY REPORT.
YOU CAN SEE THIS IN CHART 15 OF THE MONETARY POLICY REPORT.
YOU CAN SEE THIS IN CHART 15 OF THE MONETARY POLICY REPORT. LET ME MAKE TWO COMMENTS RELATED
THE MONETARY POLICY REPORT. LET ME MAKE TWO COMMENTS RELATED
THE MONETARY POLICY REPORT. LET ME MAKE TWO COMMENTS RELATED TO THIS: THE FIRST, WE BELIEVE
LET ME MAKE TWO COMMENTS RELATED TO THIS: THE FIRST, WE BELIEVE
LET ME MAKE TWO COMMENTS RELATED TO THIS: THE FIRST, WE BELIEVE THAT THE EXCESS CAPACITY IS NOT
TO THIS: THE FIRST, WE BELIEVE THAT THE EXCESS CAPACITY IS NOT
TO THIS: THE FIRST, WE BELIEVE THAT THE EXCESS CAPACITY IS NOT UNIFORMLY DISTRIBUTED, BUT IT IS
THAT THE EXCESS CAPACITY IS NOT UNIFORMLY DISTRIBUTED, BUT IT IS
THAT THE EXCESS CAPACITY IS NOT UNIFORMLY DISTRIBUTED, BUT IT IS CONCENTRATED ON THE PRAIRIES AND
UNIFORMLY DISTRIBUTED, BUT IT IS CONCENTRATED ON THE PRAIRIES AND
UNIFORMLY DISTRIBUTED, BUT IT IS CONCENTRATED ON THE PRAIRIES AND IN NEWFOUNDLAND AND LABRADOR.
CONCENTRATED ON THE PRAIRIES AND IN NEWFOUNDLAND AND LABRADOR.
CONCENTRATED ON THE PRAIRIES AND IN NEWFOUNDLAND AND LABRADOR. SECOND, OUR ESTIMATE OF THE
IN NEWFOUNDLAND AND LABRADOR. SECOND, OUR ESTIMATE OF THE
IN NEWFOUNDLAND AND LABRADOR. SECOND, OUR ESTIMATE OF THE OUTPUT GAP IS BASED ON A
SECOND, OUR ESTIMATE OF THE OUTPUT GAP IS BASED ON A
SECOND, OUR ESTIMATE OF THE OUTPUT GAP IS BASED ON A PARTIALLY UPDATED ESTIMATE OF
OUTPUT GAP IS BASED ON A PARTIALLY UPDATED ESTIMATE OF
OUTPUT GAP IS BASED ON A PARTIALLY UPDATED ESTIMATE OF THE ECONOMY'S POTENTIAL.
PARTIALLY UPDATED ESTIMATE OF THE ECONOMY'S POTENTIAL.
PARTIALLY UPDATED ESTIMATE OF THE ECONOMY'S POTENTIAL. SO THERE MAY BE A BIT MORE
THE ECONOMY'S POTENTIAL. SO THERE MAY BE A BIT MORE
THE ECONOMY'S POTENTIAL. SO THERE MAY BE A BIT MORE UNCERTAINTY AROUND THE CURRENT
SO THERE MAY BE A BIT MORE UNCERTAINTY AROUND THE CURRENT
SO THERE MAY BE A BIT MORE UNCERTAINTY AROUND THE CURRENT ESTIMATE THAN USUAL.
UNCERTAINTY AROUND THE CURRENT ESTIMATE THAN USUAL.
UNCERTAINTY AROUND THE CURRENT ESTIMATE THAN USUAL. WE'LL HAVE A MORE FULLSOME
ESTIMATE THAN USUAL. WE'LL HAVE A MORE FULLSOME
ESTIMATE THAN USUAL. WE'LL HAVE A MORE FULLSOME UPDATE ON POTENTIAL IN THE APRIL
WE'LL HAVE A MORE FULLSOME UPDATE ON POTENTIAL IN THE APRIL
WE'LL HAVE A MORE FULLSOME UPDATE ON POTENTIAL IN THE APRIL MPR.
UPDATE ON POTENTIAL IN THE APRIL MPR.
UPDATE ON POTENTIAL IN THE APRIL MPR. AT THE SAME TIME, HOUSEHOLD
MPR. AT THE SAME TIME, HOUSEHOLD
MPR. AT THE SAME TIME, HOUSEHOLD FINANCIAL VULNERABILITIES REMAIN
AT THE SAME TIME, HOUSEHOLD FINANCIAL VULNERABILITIES REMAIN
AT THE SAME TIME, HOUSEHOLD FINANCIAL VULNERABILITIES REMAIN ELEVATED ALTHOUGH WE WILL BE
FINANCIAL VULNERABILITIES REMAIN ELEVATED ALTHOUGH WE WILL BE
FINANCIAL VULNERABILITIES REMAIN ELEVATED ALTHOUGH WE WILL BE ANALYZING THE POSITIVE
ELEVATED ALTHOUGH WE WILL BE ANALYZING THE POSITIVE
ELEVATED ALTHOUGH WE WILL BE ANALYZING THE POSITIVE IMPLICATIONS OF A HIGHER
ANALYZING THE POSITIVE IMPLICATIONS OF A HIGHER
ANALYZING THE POSITIVE IMPLICATIONS OF A HIGHER HOUSEHOLD SAVINGS RATE FOR THOSE
IMPLICATIONS OF A HIGHER HOUSEHOLD SAVINGS RATE FOR THOSE
IMPLICATIONS OF A HIGHER HOUSEHOLD SAVINGS RATE FOR THOSE VULNERABILITIES.
HOUSEHOLD SAVINGS RATE FOR THOSE VULNERABILITIES.
HOUSEHOLD SAVINGS RATE FOR THOSE VULNERABILITIES. [ VOICE OF TRANSLATOR ] BOTH
VULNERABILITIES. [ VOICE OF TRANSLATOR ] BOTH
VULNERABILITIES. [ VOICE OF TRANSLATOR ] BOTH THESE CONSIDERED, IT WAS
[ VOICE OF TRANSLATOR ] BOTH THESE CONSIDERED, IT WAS
[ VOICE OF TRANSLATOR ] BOTH THESE CONSIDERED, IT WAS GOVERNING COUNCIL'S VIEW THAT
THESE CONSIDERED, IT WAS GOVERNING COUNCIL'S VIEW THAT
THESE CONSIDERED, IT WAS GOVERNING COUNCIL'S VIEW THAT THE BALANCE OF RISK DOES NOT
GOVERNING COUNCIL'S VIEW THAT THE BALANCE OF RISK DOES NOT
GOVERNING COUNCIL'S VIEW THAT THE BALANCE OF RISK DOES NOT WARRANT LOWER INTEREST RATES AT
THE BALANCE OF RISK DOES NOT WARRANT LOWER INTEREST RATES AT
THE BALANCE OF RISK DOES NOT WARRANT LOWER INTEREST RATES AT WE WEIGHED THE RISKS THAT
WARRANT LOWER INTEREST RATES AT WE WEIGHED THE RISKS THAT
WARRANT LOWER INTEREST RATES AT WE WEIGHED THE RISKS THAT INFLATION COULD FALL SHORT OF
WE WEIGHED THE RISKS THAT INFLATION COULD FALL SHORT OF
WE WEIGHED THE RISKS THAT INFLATION COULD FALL SHORT OF TARGET AGAINST THE RISK THAT A
INFLATION COULD FALL SHORT OF TARGET AGAINST THE RISK THAT A
INFLATION COULD FALL SHORT OF TARGET AGAINST THE RISK THAT A LOWER INTEREST RATES PASS WOULD
TARGET AGAINST THE RISK THAT A LOWER INTEREST RATES PASS WOULD
TARGET AGAINST THE RISK THAT A LOWER INTEREST RATES PASS WOULD LEAD TO A HIGHER FINANCIAL
LOWER INTEREST RATES PASS WOULD LEAD TO A HIGHER FINANCIAL
LOWER INTEREST RATES PASS WOULD LEAD TO A HIGHER FINANCIAL VULNERABILITIES WHICH WOULD MAKE
LEAD TO A HIGHER FINANCIAL VULNERABILITIES WHICH WOULD MAKE
LEAD TO A HIGHER FINANCIAL VULNERABILITIES WHICH WOULD MAKE IT EVEN MORE DIFFICULT TO ATTAIN
VULNERABILITIES WHICH WOULD MAKE IT EVEN MORE DIFFICULT TO ATTAIN
VULNERABILITIES WHICH WOULD MAKE IT EVEN MORE DIFFICULT TO ATTAIN THE INFLATION TARGET FURTHER
IT EVEN MORE DIFFICULT TO ATTAIN THE INFLATION TARGET FURTHER
IT EVEN MORE DIFFICULT TO ATTAIN THE INFLATION TARGET FURTHER DOWN THE ROAD.
THE INFLATION TARGET FURTHER DOWN THE ROAD.
THE INFLATION TARGET FURTHER DOWN THE ROAD. CLEARLY THIS BALANCE CAN CHANGE
DOWN THE ROAD. CLEARLY THIS BALANCE CAN CHANGE
DOWN THE ROAD. CLEARLY THIS BALANCE CAN CHANGE OVER TIME, AS DATA EVOLVES.
CLEARLY THIS BALANCE CAN CHANGE OVER TIME, AS DATA EVOLVES.
CLEARLY THIS BALANCE CAN CHANGE OVER TIME, AS DATA EVOLVES. IN THIS REGARD, GOVERNING
OVER TIME, AS DATA EVOLVES. IN THIS REGARD, GOVERNING
OVER TIME, AS DATA EVOLVES. IN THIS REGARD, GOVERNING COUNCIL WOULD BE WATCHING
IN THIS REGARD, GOVERNING COUNCIL WOULD BE WATCHING
IN THIS REGARD, GOVERNING COUNCIL WOULD BE WATCHING CLOSELY TO SEE IF THE RECENT
COUNCIL WOULD BE WATCHING CLOSELY TO SEE IF THE RECENT
COUNCIL WOULD BE WATCHING CLOSELY TO SEE IF THE RECENT SLOWDOWN IN GROWTH IS MORE
CLOSELY TO SEE IF THE RECENT SLOWDOWN IN GROWTH IS MORE
CLOSELY TO SEE IF THE RECENT SLOWDOWN IN GROWTH IS MORE PERSISTENT THAN FORECAST.
SLOWDOWN IN GROWTH IS MORE PERSISTENT THAN FORECAST.
SLOWDOWN IN GROWTH IS MORE PERSISTENT THAN FORECAST. IN ASSESSING INCOMING DATA, THE
PERSISTENT THAN FORECAST. IN ASSESSING INCOMING DATA, THE
PERSISTENT THAN FORECAST. IN ASSESSING INCOMING DATA, THE BANK WILL BE PAYING PARTICULAR
IN ASSESSING INCOMING DATA, THE BANK WILL BE PAYING PARTICULAR
IN ASSESSING INCOMING DATA, THE BANK WILL BE PAYING PARTICULAR ATTENTION TO DEVELOPMENT IN
BANK WILL BE PAYING PARTICULAR ATTENTION TO DEVELOPMENT IN
BANK WILL BE PAYING PARTICULAR ATTENTION TO DEVELOPMENT IN CONSUMER SPENDING, THE HOUSING
ATTENTION TO DEVELOPMENT IN CONSUMER SPENDING, THE HOUSING
ATTENTION TO DEVELOPMENT IN CONSUMER SPENDING, THE HOUSING MARKET AND BUSINESS INVESTMENT.
CONSUMER SPENDING, THE HOUSING MARKET AND BUSINESS INVESTMENT.
CONSUMER SPENDING, THE HOUSING MARKET AND BUSINESS INVESTMENT. >> ALL THINGS CONSIDERED, IT WAS
MARKET AND BUSINESS INVESTMENT. >> ALL THINGS CONSIDERED, IT WAS
MARKET AND BUSINESS INVESTMENT. >> ALL THINGS CONSIDERED, IT WAS GOVERN COUNCIL'S VIEW THAT THE
>> ALL THINGS CONSIDERED, IT WAS GOVERN COUNCIL'S VIEW THAT THE
>> ALL THINGS CONSIDERED, IT WAS GOVERN COUNCIL'S VIEW THAT THE BALANCE OF RISK DOES NOT WARRANT
GOVERN COUNCIL'S VIEW THAT THE BALANCE OF RISK DOES NOT WARRANT
GOVERN COUNCIL'S VIEW THAT THE BALANCE OF RISK DOES NOT WARRANT LOWER INTEREST RATES AT.
BALANCE OF RISK DOES NOT WARRANT LOWER INTEREST RATES AT.
BALANCE OF RISK DOES NOT WARRANT LOWER INTEREST RATES AT. LOWER INTEREST RATES WOULD LEAD
LOWER INTEREST RATES AT. LOWER INTEREST RATES WOULD LEAD
LOWER INTEREST RATES AT. LOWER INTEREST RATES WOULD LEAD TO HIGHER FINANCIAL
LOWER INTEREST RATES WOULD LEAD TO HIGHER FINANCIAL
LOWER INTEREST RATES WOULD LEAD TO HIGHER FINANCIAL VULNERABILITIES, WHICH COULD
TO HIGHER FINANCIAL VULNERABILITIES, WHICH COULD
TO HIGHER FINANCIAL VULNERABILITIES, WHICH COULD MAKE IT EVEN MORE DIFFICULT TO
VULNERABILITIES, WHICH COULD MAKE IT EVEN MORE DIFFICULT TO
VULNERABILITIES, WHICH COULD MAKE IT EVEN MORE DIFFICULT TO ATTAIN THE INFLATION TARGET
MAKE IT EVEN MORE DIFFICULT TO ATTAIN THE INFLATION TARGET
MAKE IT EVEN MORE DIFFICULT TO ATTAIN THE INFLATION TARGET FURTHER DOWN THE ROAD.
ATTAIN THE INFLATION TARGET FURTHER DOWN THE ROAD.
ATTAIN THE INFLATION TARGET FURTHER DOWN THE ROAD. CLEARLY, THIS BALANCE CAN CHANGE
FURTHER DOWN THE ROAD. CLEARLY, THIS BALANCE CAN CHANGE
FURTHER DOWN THE ROAD. CLEARLY, THIS BALANCE CAN CHANGE OVER TIME, AS THE DATA EVOLVES.
CLEARLY, THIS BALANCE CAN CHANGE OVER TIME, AS THE DATA EVOLVES.
CLEARLY, THIS BALANCE CAN CHANGE OVER TIME, AS THE DATA EVOLVES. IN THIS REGARD, COUNCIL WILL BE
OVER TIME, AS THE DATA EVOLVES. IN THIS REGARD, COUNCIL WILL BE
OVER TIME, AS THE DATA EVOLVES. IN THIS REGARD, COUNCIL WILL BE WATCHING CLOSELY TO SEE IF THE
IN THIS REGARD, COUNCIL WILL BE WATCHING CLOSELY TO SEE IF THE
IN THIS REGARD, COUNCIL WILL BE WATCHING CLOSELY TO SEE IF THE RECENT SLOWDOWN IN GROWTH IS
WATCHING CLOSELY TO SEE IF THE RECENT SLOWDOWN IN GROWTH IS
WATCHING CLOSELY TO SEE IF THE RECENT SLOWDOWN IN GROWTH IS MORE PERSISTENT THAN FORECAST
RECENT SLOWDOWN IN GROWTH IS MORE PERSISTENT THAN FORECAST
RECENT SLOWDOWN IN GROWTH IS MORE PERSISTENT THAN FORECAST AND IN ASSESSING INCOMING DATA
MORE PERSISTENT THAN FORECAST AND IN ASSESSING INCOMING DATA
MORE PERSISTENT THAN FORECAST AND IN ASSESSING INCOMING DATA THE BANK IS PAYING PARTICULAR
AND IN ASSESSING INCOMING DATA THE BANK IS PAYING PARTICULAR
AND IN ASSESSING INCOMING DATA THE BANK IS PAYING PARTICULAR ATTENTION TO DEVELOPMENTS IN
THE BANK IS PAYING PARTICULAR ATTENTION TO DEVELOPMENTS IN
THE BANK IS PAYING PARTICULAR ATTENTION TO DEVELOPMENTS IN CONSUMER SPENDING AND HOUSING
ATTENTION TO DEVELOPMENTS IN CONSUMER SPENDING AND HOUSING
ATTENTION TO DEVELOPMENTS IN CONSUMER SPENDING AND HOUSING MARKETS AND BUSINESS INVESTMENT.
CONSUMER SPENDING AND HOUSING MARKETS AND BUSINESS INVESTMENT.
CONSUMER SPENDING AND HOUSING MARKETS AND BUSINESS INVESTMENT. WITH THAT SENIOR DEPUTY GOVERNOR
MARKETS AND BUSINESS INVESTMENT. WITH THAT SENIOR DEPUTY GOVERNOR
MARKETS AND BUSINESS INVESTMENT. WITH THAT SENIOR DEPUTY GOVERNOR WILKINS AND I WILL BE HAPPY TO
WITH THAT SENIOR DEPUTY GOVERNOR WILKINS AND I WILL BE HAPPY TO
WITH THAT SENIOR DEPUTY GOVERNOR WILKINS AND I WILL BE HAPPY TO TAKE YOUR QUESTIONS.
WILKINS AND I WILL BE HAPPY TO TAKE YOUR QUESTIONS.
WILKINS AND I WILL BE HAPPY TO TAKE YOUR QUESTIONS. >> THE FIRST QUESTION FROM KEVIN
TAKE YOUR QUESTIONS. >> THE FIRST QUESTION FROM KEVIN
TAKE YOUR QUESTIONS. >> THE FIRST QUESTION FROM KEVIN FOLLOWED BY GREG QUINN.
>> THE FIRST QUESTION FROM KEVIN FOLLOWED BY GREG QUINN.
>> THE FIRST QUESTION FROM KEVIN FOLLOWED BY GREG QUINN. >> Question: GOOD MORNING.
FOLLOWED BY GREG QUINN. >> Question: GOOD MORNING.
FOLLOWED BY GREG QUINN. >> Question: GOOD MORNING. YOU SAY THE POLICY STATEMENT
>> Question: GOOD MORNING. YOU SAY THE POLICY STATEMENT
>> Question: GOOD MORNING. YOU SAY THE POLICY STATEMENT THAT YOU'LL BE WATCHING FOR
YOU SAY THE POLICY STATEMENT THAT YOU'LL BE WATCHING FOR
YOU SAY THE POLICY STATEMENT THAT YOU'LL BE WATCHING FOR EVIDENCE ON WHETHER THE SLOWDOWN
THAT YOU'LL BE WATCHING FOR EVIDENCE ON WHETHER THE SLOWDOWN
THAT YOU'LL BE WATCHING FOR EVIDENCE ON WHETHER THE SLOWDOWN IS MORE PERSISTENT THAN
EVIDENCE ON WHETHER THE SLOWDOWN IS MORE PERSISTENT THAN
EVIDENCE ON WHETHER THE SLOWDOWN IS MORE PERSISTENT THAN FORECAST.
IS MORE PERSISTENT THAN FORECAST.
IS MORE PERSISTENT THAN FORECAST. CAN YOU ELABORATE ON WHAT
FORECAST. CAN YOU ELABORATE ON WHAT
FORECAST. CAN YOU ELABORATE ON WHAT PERSISTENT LOOKS LIKE.
CAN YOU ELABORATE ON WHAT PERSISTENT LOOKS LIKE.
CAN YOU ELABORATE ON WHAT PERSISTENT LOOKS LIKE. >> SO PERSISTENCE WOULD BE
PERSISTENT LOOKS LIKE. >> SO PERSISTENCE WOULD BE
PERSISTENT LOOKS LIKE. >> SO PERSISTENCE WOULD BE MEASURED AGAINST ITS IMPACT ON
>> SO PERSISTENCE WOULD BE MEASURED AGAINST ITS IMPACT ON
>> SO PERSISTENCE WOULD BE MEASURED AGAINST ITS IMPACT ON THE OUTLOOK FOR INFLATION.
MEASURED AGAINST ITS IMPACT ON THE OUTLOOK FOR INFLATION.
MEASURED AGAINST ITS IMPACT ON THE OUTLOOK FOR INFLATION. SO AS WE SHOW IN CHART 15 RIGHT
THE OUTLOOK FOR INFLATION. SO AS WE SHOW IN CHART 15 RIGHT
THE OUTLOOK FOR INFLATION. SO AS WE SHOW IN CHART 15 RIGHT NOW, YOU CAN SEE THE LITTLE BLUE
SO AS WE SHOW IN CHART 15 RIGHT NOW, YOU CAN SEE THE LITTLE BLUE
SO AS WE SHOW IN CHART 15 RIGHT NOW, YOU CAN SEE THE LITTLE BLUE BARS ARE A MEASURE OF WHAT WE
NOW, YOU CAN SEE THE LITTLE BLUE BARS ARE A MEASURE OF WHAT WE
NOW, YOU CAN SEE THE LITTLE BLUE BARS ARE A MEASURE OF WHAT WE BELIEVE TODAY THE GAP IS AND
BARS ARE A MEASURE OF WHAT WE BELIEVE TODAY THE GAP IS AND
BARS ARE A MEASURE OF WHAT WE BELIEVE TODAY THE GAP IS AND WHAT IT WILL LOOK LIKE OVER THE
BELIEVE TODAY THE GAP IS AND WHAT IT WILL LOOK LIKE OVER THE
BELIEVE TODAY THE GAP IS AND WHAT IT WILL LOOK LIKE OVER THE COURSE OF THE PROJECTION
WHAT IT WILL LOOK LIKE OVER THE COURSE OF THE PROJECTION
WHAT IT WILL LOOK LIKE OVER THE COURSE OF THE PROJECTION ARISING.
COURSE OF THE PROJECTION ARISING.
COURSE OF THE PROJECTION ARISING. AND THAT PUTS A LITTLE BIT OF
ARISING. AND THAT PUTS A LITTLE BIT OF
ARISING. AND THAT PUTS A LITTLE BIT OF DOWNWARD PRESSURE ON INFLATION.
AND THAT PUTS A LITTLE BIT OF DOWNWARD PRESSURE ON INFLATION.
AND THAT PUTS A LITTLE BIT OF DOWNWARD PRESSURE ON INFLATION. SO IF THE SLOWDOWN PROVED TO BE
DOWNWARD PRESSURE ON INFLATION. SO IF THE SLOWDOWN PROVED TO BE
DOWNWARD PRESSURE ON INFLATION. SO IF THE SLOWDOWN PROVED TO BE MORE PERSISTENT THAN WHAT WE
SO IF THE SLOWDOWN PROVED TO BE MORE PERSISTENT THAN WHAT WE
SO IF THE SLOWDOWN PROVED TO BE MORE PERSISTENT THAN WHAT WE DEALT IN THAT CASE, THEN THAT
MORE PERSISTENT THAN WHAT WE DEALT IN THAT CASE, THEN THAT
MORE PERSISTENT THAN WHAT WE DEALT IN THAT CASE, THEN THAT DOWNWARD PRESSURE WOULD BECOME
DEALT IN THAT CASE, THEN THAT DOWNWARD PRESSURE WOULD BECOME
DEALT IN THAT CASE, THEN THAT DOWNWARD PRESSURE WOULD BECOME LARGER AND IT IS THAT DOWN SIDE
DOWNWARD PRESSURE WOULD BECOME LARGER AND IT IS THAT DOWN SIDE
DOWNWARD PRESSURE WOULD BECOME LARGER AND IT IS THAT DOWN SIDE RISK THAT WE COMPARE OR MEASURE
LARGER AND IT IS THAT DOWN SIDE RISK THAT WE COMPARE OR MEASURE
LARGER AND IT IS THAT DOWN SIDE RISK THAT WE COMPARE OR MEASURE AGAINST THE RISKS OF OTHER RISKS
RISK THAT WE COMPARE OR MEASURE AGAINST THE RISKS OF OTHER RISKS
RISK THAT WE COMPARE OR MEASURE AGAINST THE RISKS OF OTHER RISKS THAT WE WOULD BE ADDING TO THE
AGAINST THE RISKS OF OTHER RISKS THAT WE WOULD BE ADDING TO THE
AGAINST THE RISKS OF OTHER RISKS THAT WE WOULD BE ADDING TO THE SYST
THAT WE WOULD BE ADDING TO THE SYST
THAT WE WOULD BE ADDING TO THE SYST BY LOWERING INTEREST RATES AND
SYST BY LOWERING INTEREST RATES AND
SYST BY LOWERING INTEREST RATES AND POTENTIALLY FUELLING FINANCIAL
BY LOWERING INTEREST RATES AND POTENTIALLY FUELLING FINANCIAL
BY LOWERING INTEREST RATES AND POTENTIALLY FUELLING FINANCIAL VU
POTENTIALLY FUELLING FINANCIAL VU
POTENTIALLY FUELLING FINANCIAL VU THAT MEANS YOU'RE IN A POSITION
VU THAT MEANS YOU'RE IN A POSITION
VU THAT MEANS YOU'RE IN A POSITION LATER WHERE A DOWNTURN IN THE
THAT MEANS YOU'RE IN A POSITION LATER WHERE A DOWNTURN IN THE
THAT MEANS YOU'RE IN A POSITION LATER WHERE A DOWNTURN IN THE ECONOMY CAN HAVE A BIGGER EFFECT
LATER WHERE A DOWNTURN IN THE ECONOMY CAN HAVE A BIGGER EFFECT
LATER WHERE A DOWNTURN IN THE ECONOMY CAN HAVE A BIGGER EFFECT AND MAKE IT HARD ER TO REACH
ECONOMY CAN HAVE A BIGGER EFFECT AND MAKE IT HARD ER TO REACH
ECONOMY CAN HAVE A BIGGER EFFECT AND MAKE IT HARD ER TO REACH YOUR TARGET.
AND MAKE IT HARD ER TO REACH YOUR TARGET.
AND MAKE IT HARD ER TO REACH YOUR TARGET. THE HIGHER SAVINGS RATE FIGURES
YOUR TARGET. THE HIGHER SAVINGS RATE FIGURES
YOUR TARGET. THE HIGHER SAVINGS RATE FIGURES INTO THAT CALCULUS.
THE HIGHER SAVINGS RATE FIGURES INTO THAT CALCULUS.
THE HIGHER SAVINGS RATE FIGURES INTO THAT CALCULUS. THE HIGHER SAVINGS RATE COULD
INTO THAT CALCULUS. THE HIGHER SAVINGS RATE COULD
INTO THAT CALCULUS. THE HIGHER SAVINGS RATE COULD HAVE POSITIVE IMPLICATIONS FOR
THE HIGHER SAVINGS RATE COULD HAVE POSITIVE IMPLICATIONS FOR
THE HIGHER SAVINGS RATE COULD HAVE POSITIVE IMPLICATIONS FOR THOSE VULNERABILITIES.
HAVE POSITIVE IMPLICATIONS FOR THOSE VULNERABILITIES.
HAVE POSITIVE IMPLICATIONS FOR THOSE VULNERABILITIES. THAT'S ANALYSIS THAT HAS TO BE
THOSE VULNERABILITIES. THAT'S ANALYSIS THAT HAS TO BE
THOSE VULNERABILITIES. THAT'S ANALYSIS THAT HAS TO BE DONE OVER A LONGER TIME PERIOD.
THAT'S ANALYSIS THAT HAS TO BE DONE OVER A LONGER TIME PERIOD.
THAT'S ANALYSIS THAT HAS TO BE DONE OVER A LONGER TIME PERIOD. SO A COMPLICATED TRADEOFF BUT
DONE OVER A LONGER TIME PERIOD. SO A COMPLICATED TRADEOFF BUT
DONE OVER A LONGER TIME PERIOD. SO A COMPLICATED TRADEOFF BUT THAT'S THE GIST OF IT.
SO A COMPLICATED TRADEOFF BUT THAT'S THE GIST OF IT.
SO A COMPLICATED TRADEOFF BUT THAT'S THE GIST OF IT. >> Question: MY SECOND QUESTION
THAT'S THE GIST OF IT. >> Question: MY SECOND QUESTION
THAT'S THE GIST OF IT. >> Question: MY SECOND QUESTION IS WITH REGARDS TO THE FEDERAL
>> Question: MY SECOND QUESTION IS WITH REGARDS TO THE FEDERAL
>> Question: MY SECOND QUESTION IS WITH REGARDS TO THE FEDERAL INCOME TAX CUT.
IS WITH REGARDS TO THE FEDERAL INCOME TAX CUT.
IS WITH REGARDS TO THE FEDERAL INCOME TAX CUT. YOU SAID BACK IN THE FALL THAT
INCOME TAX CUT. YOU SAID BACK IN THE FALL THAT
INCOME TAX CUT. YOU SAID BACK IN THE FALL THAT THE STIMULUS -- FISCAL STIMULUS
YOU SAID BACK IN THE FALL THAT THE STIMULUS -- FISCAL STIMULUS
YOU SAID BACK IN THE FALL THAT THE STIMULUS -- FISCAL STIMULUS OF ABOUT $5 BILLION IS AS GOOD
THE STIMULUS -- FISCAL STIMULUS OF ABOUT $5 BILLION IS AS GOOD
THE STIMULUS -- FISCAL STIMULUS OF ABOUT $5 BILLION IS AS GOOD AS A RATE CUT ABOUT A QUARTER
OF ABOUT $5 BILLION IS AS GOOD AS A RATE CUT ABOUT A QUARTER
OF ABOUT $5 BILLION IS AS GOOD AS A RATE CUT ABOUT A QUARTER PERCENTAGE POINT.
AS A RATE CUT ABOUT A QUARTER PERCENTAGE POINT.
AS A RATE CUT ABOUT A QUARTER PERCENTAGE POINT. SHOULD WE EXTRAPOLATE FROM THAT
PERCENTAGE POINT. SHOULD WE EXTRAPOLATE FROM THAT
PERCENTAGE POINT. SHOULD WE EXTRAPOLATE FROM THAT THAT THE TAX CUT IS IN THE WORKS
SHOULD WE EXTRAPOLATE FROM THAT THAT THE TAX CUT IS IN THE WORKS
SHOULD WE EXTRAPOLATE FROM THAT THAT THE TAX CUT IS IN THE WORKS IS AS GOOD AS A QUARTER POINT
THAT THE TAX CUT IS IN THE WORKS IS AS GOOD AS A QUARTER POINT
THAT THE TAX CUT IS IN THE WORKS IS AS GOOD AS A QUARTER POINT INTEREST RATE CUT?
IS AS GOOD AS A QUARTER POINT INTEREST RATE CUT?
IS AS GOOD AS A QUARTER POINT INTEREST RATE CUT? IS THE MATH AS SIMPLE AS THAT?
INTEREST RATE CUT? IS THE MATH AS SIMPLE AS THAT?
INTEREST RATE CUT? IS THE MATH AS SIMPLE AS THAT? >> I GAVE YOU THAT RULE OF THUMB
IS THE MATH AS SIMPLE AS THAT? >> I GAVE YOU THAT RULE OF THUMB
IS THE MATH AS SIMPLE AS THAT? >> I GAVE YOU THAT RULE OF THUMB AS A WAY TO KIND OF PUT A METRIC
>> I GAVE YOU THAT RULE OF THUMB AS A WAY TO KIND OF PUT A METRIC
>> I GAVE YOU THAT RULE OF THUMB AS A WAY TO KIND OF PUT A METRIC OUT THERE.
AS A WAY TO KIND OF PUT A METRIC OUT THERE.
AS A WAY TO KIND OF PUT A METRIC OUT THERE. SO IT ISN'T QUITE AS SIMPLE AS
OUT THERE. SO IT ISN'T QUITE AS SIMPLE AS
OUT THERE. SO IT ISN'T QUITE AS SIMPLE AS THAT.
SO IT ISN'T QUITE AS SIMPLE AS THAT.
SO IT ISN'T QUITE AS SIMPLE AS THAT. IN THE REAL WORLD, WHAT HAPPENS
THAT. IN THE REAL WORLD, WHAT HAPPENS
THAT. IN THE REAL WORLD, WHAT HAPPENS IS MANY ITEMS MIGHT CHANGE IN A
IN THE REAL WORLD, WHAT HAPPENS IS MANY ITEMS MIGHT CHANGE IN A
IN THE REAL WORLD, WHAT HAPPENS IS MANY ITEMS MIGHT CHANGE IN A BUDGET AND SO YOU PUT ALL THOSE
IS MANY ITEMS MIGHT CHANGE IN A BUDGET AND SO YOU PUT ALL THOSE
IS MANY ITEMS MIGHT CHANGE IN A BUDGET AND SO YOU PUT ALL THOSE FISCAL ASSUMPTIONS IN.
BUDGET AND SO YOU PUT ALL THOSE FISCAL ASSUMPTIONS IN.
BUDGET AND SO YOU PUT ALL THOSE FISCAL ASSUMPTIONS IN. THAT'S SOMETHING WE'LL DO
FISCAL ASSUMPTIONS IN. THAT'S SOMETHING WE'LL DO
FISCAL ASSUMPTIONS IN. THAT'S SOMETHING WE'LL DO WHENEVER WE HAVE A NEW BUDGET.
THAT'S SOMETHING WE'LL DO WHENEVER WE HAVE A NEW BUDGET.
THAT'S SOMETHING WE'LL DO WHENEVER WE HAVE A NEW BUDGET. FOR NOW, THIS FORECAST INCLUDES
WHENEVER WE HAVE A NEW BUDGET. FOR NOW, THIS FORECAST INCLUDES
WHENEVER WE HAVE A NEW BUDGET. FOR NOW, THIS FORECAST INCLUDES THE IMMEDIATE TAX CUT THAT THE
FOR NOW, THIS FORECAST INCLUDES THE IMMEDIATE TAX CUT THAT THE
FOR NOW, THIS FORECAST INCLUDES THE IMMEDIATE TAX CUT THAT THE NEW GOVERNMENT PUT INTO PLACE.
THE IMMEDIATE TAX CUT THAT THE NEW GOVERNMENT PUT INTO PLACE.
THE IMMEDIATE TAX CUT THAT THE NEW GOVERNMENT PUT INTO PLACE. THAT HAS A SMALLER EFFECT.
NEW GOVERNMENT PUT INTO PLACE. THAT HAS A SMALLER EFFECT.
NEW GOVERNMENT PUT INTO PLACE. THAT HAS A SMALLER EFFECT. CONSERVATIVERYLY ON THE ORDER OF
THAT HAS A SMALLER EFFECT. CONSERVATIVERYLY ON THE ORDER OF
THAT HAS A SMALLER EFFECT. CONSERVATIVERYLY ON THE ORDER OF .1 PERCENTAGE POINTS ON GROWTH.
CONSERVATIVERYLY ON THE ORDER OF .1 PERCENTAGE POINTS ON GROWTH.
CONSERVATIVERYLY ON THE ORDER OF .1 PERCENTAGE POINTS ON GROWTH. IT'S PROBABLY A LITTLE BIT MORE
.1 PERCENTAGE POINTS ON GROWTH. IT'S PROBABLY A LITTLE BIT MORE
.1 PERCENTAGE POINTS ON GROWTH. IT'S PROBABLY A LITTLE BIT MORE THAN THAT.
IT'S PROBABLY A LITTLE BIT MORE THAN THAT.
IT'S PROBABLY A LITTLE BIT MORE THAN THAT. BUT I WON'T PUT A NUMBER AGAINST
THAN THAT. BUT I WON'T PUT A NUMBER AGAINST
THAN THAT. BUT I WON'T PUT A NUMBER AGAINST IT BECAUSE IT'S A TARGETED TAX
BUT I WON'T PUT A NUMBER AGAINST IT BECAUSE IT'S A TARGETED TAX
BUT I WON'T PUT A NUMBER AGAINST IT BECAUSE IT'S A TARGETED TAX CUT AS POE OPPOSED TO JUST A
IT BECAUSE IT'S A TARGETED TAX CUT AS POE OPPOSED TO JUST A
IT BECAUSE IT'S A TARGETED TAX CUT AS POE OPPOSED TO JUST A GENERAL FISCAL STIMULUS, AND
CUT AS POE OPPOSED TO JUST A GENERAL FISCAL STIMULUS, AND
CUT AS POE OPPOSED TO JUST A GENERAL FISCAL STIMULUS, AND TARGETED IN THE SENSE THAT IT'S
GENERAL FISCAL STIMULUS, AND TARGETED IN THE SENSE THAT IT'S
GENERAL FISCAL STIMULUS, AND TARGETED IN THE SENSE THAT IT'S MORE LIKELY THAT IT WILL RECEIVE
TARGETED IN THE SENSE THAT IT'S MORE LIKELY THAT IT WILL RECEIVE
TARGETED IN THE SENSE THAT IT'S MORE LIKELY THAT IT WILL RECEIVE THE TAX CUT WILL ACTUALLY SPEND
MORE LIKELY THAT IT WILL RECEIVE THE TAX CUT WILL ACTUALLY SPEND
MORE LIKELY THAT IT WILL RECEIVE THE TAX CUT WILL ACTUALLY SPEND THE MONEY.
THE TAX CUT WILL ACTUALLY SPEND THE MONEY.
THE TAX CUT WILL ACTUALLY SPEND THE MONEY. SO THAT'S TO SAY IT COULD BE IN
THE MONEY. SO THAT'S TO SAY IT COULD BE IN
THE MONEY. SO THAT'S TO SAY IT COULD BE IN THE BALLPARK OF, SAY, 10 TO 20
SO THAT'S TO SAY IT COULD BE IN THE BALLPARK OF, SAY, 10 TO 20
SO THAT'S TO SAY IT COULD BE IN THE BALLPARK OF, SAY, 10 TO 20 BASIS POINTS EQUIVALENTS, 10,
THE BALLPARK OF, SAY, 10 TO 20 BASIS POINTS EQUIVALENTS, 10,
THE BALLPARK OF, SAY, 10 TO 20 BASIS POINTS EQUIVALENTS, 10, 15, MIGHT BE A BETTER RANGE OF
BASIS POINTS EQUIVALENTS, 10, 15, MIGHT BE A BETTER RANGE OF
BASIS POINTS EQUIVALENTS, 10, 15, MIGHT BE A BETTER RANGE OF ESTIMATE SO WE'VE PUT IT IN AS
15, MIGHT BE A BETTER RANGE OF ESTIMATE SO WE'VE PUT IT IN AS
15, MIGHT BE A BETTER RANGE OF ESTIMATE SO WE'VE PUT IT IN AS .1, WHICH IS AROUND 10 BASIS
ESTIMATE SO WE'VE PUT IT IN AS .1, WHICH IS AROUND 10 BASIS
ESTIMATE SO WE'VE PUT IT IN AS .1, WHICH IS AROUND 10 BASIS POINTS
.1, WHICH IS AROUND 10 BASIS POINTS
.1, WHICH IS AROUND 10 BASIS POINTS SO THAT'S ONE WAY TO THINK ABOUT
POINTS SO THAT'S ONE WAY TO THINK ABOUT
POINTS SO THAT'S ONE WAY TO THINK ABOUT THAT.
SO THAT'S ONE WAY TO THINK ABOUT THAT.
SO THAT'S ONE WAY TO THINK ABOUT THAT. THERE ARE OTHER THINGS MOVING IN
THAT. THERE ARE OTHER THINGS MOVING IN
THAT. THERE ARE OTHER THINGS MOVING IN THAT SPACE, RECONDUCTIONS AND
THERE ARE OTHER THINGS MOVING IN THAT SPACE, RECONDUCTIONS AND
THERE ARE OTHER THINGS MOVING IN THAT SPACE, RECONDUCTIONS AND THAT THE FISCAL LINE CONTINUES
THAT SPACE, RECONDUCTIONS AND THAT THE FISCAL LINE CONTINUES
THAT SPACE, RECONDUCTIONS AND THAT THE FISCAL LINE CONTINUES TO BE LIKE A CONTRIBUTOR TO GDP
THAT THE FISCAL LINE CONTINUES TO BE LIKE A CONTRIBUTOR TO GDP
THAT THE FISCAL LINE CONTINUES TO BE LIKE A CONTRIBUTOR TO GDP GROWTH IN OUR TABLES, SO THEY
TO BE LIKE A CONTRIBUTOR TO GDP GROWTH IN OUR TABLES, SO THEY
TO BE LIKE A CONTRIBUTOR TO GDP GROWTH IN OUR TABLES, SO THEY WILL TWO OR THREE, I FORGET
GROWTH IN OUR TABLES, SO THEY WILL TWO OR THREE, I FORGET
GROWTH IN OUR TABLES, SO THEY WILL TWO OR THREE, I FORGET WHICH ONE.
WILL TWO OR THREE, I FORGET WHICH ONE.
WILL TWO OR THREE, I FORGET WHICH ONE. BUT A LITTLE LESS THAN IT DID IN
WHICH ONE. BUT A LITTLE LESS THAN IT DID IN
WHICH ONE. BUT A LITTLE LESS THAN IT DID IN THE PAST, THAT EFFECT, BECAUSE
BUT A LITTLE LESS THAN IT DID IN THE PAST, THAT EFFECT, BECAUSE
BUT A LITTLE LESS THAN IT DID IN THE PAST, THAT EFFECT, BECAUSE THERE ARE SOME UPSETS.
THE PAST, THAT EFFECT, BECAUSE THERE ARE SOME UPSETS.
THE PAST, THAT EFFECT, BECAUSE THERE ARE SOME UPSETS. >> GREG QUINN.
THERE ARE SOME UPSETS. >> GREG QUINN.
THERE ARE SOME UPSETS. >> GREG QUINN. >> Question: GREG QUINN, MARKET
>> GREG QUINN. >> Question: GREG QUINN, MARKET
>> GREG QUINN. >> Question: GREG QUINN, MARKET NEWS.
>> Question: GREG QUINN, MARKET NEWS.
>> Question: GREG QUINN, MARKET NEWS. GOOD MORNING.
NEWS. GOOD MORNING.
NEWS. GOOD MORNING. IF GROWTH HAS BEEN A LITTLE
GOOD MORNING. IF GROWTH HAS BEEN A LITTLE
GOOD MORNING. IF GROWTH HAS BEEN A LITTLE DISAPPOINTING AND THERE ARE
IF GROWTH HAS BEEN A LITTLE DISAPPOINTING AND THERE ARE
IF GROWTH HAS BEEN A LITTLE DISAPPOINTING AND THERE ARE STILL BAD THINGS GOING ON IN THE
DISAPPOINTING AND THERE ARE STILL BAD THINGS GOING ON IN THE
DISAPPOINTING AND THERE ARE STILL BAD THINGS GOING ON IN THE WORLD, HOW IS IT THAT HEADLINE
STILL BAD THINGS GOING ON IN THE WORLD, HOW IS IT THAT HEADLINE
STILL BAD THINGS GOING ON IN THE WORLD, HOW IS IT THAT HEADLINE AND CORE INFLATION STICKS SO
WORLD, HOW IS IT THAT HEADLINE AND CORE INFLATION STICKS SO
WORLD, HOW IS IT THAT HEADLINE AND CORE INFLATION STICKS SO CLOSE TO 2% THROUGH THE
AND CORE INFLATION STICKS SO CLOSE TO 2% THROUGH THE
AND CORE INFLATION STICKS SO CLOSE TO 2% THROUGH THE PROJECTION AND THAT THE RISKS
CLOSE TO 2% THROUGH THE PROJECTION AND THAT THE RISKS
CLOSE TO 2% THROUGH THE PROJECTION AND THAT THE RISKS AROUND INFLATION REMAIN ROUGHLY
PROJECTION AND THAT THE RISKS AROUND INFLATION REMAIN ROUGHLY
PROJECTION AND THAT THE RISKS AROUND INFLATION REMAIN ROUGHLY BALANCED?
AROUND INFLATION REMAIN ROUGHLY BALANCED?
AROUND INFLATION REMAIN ROUGHLY BALANCED? >> WELL, THE PART THAT'S WITH
BALANCED? >> WELL, THE PART THAT'S WITH
BALANCED? >> WELL, THE PART THAT'S WITH RESPECT TO HISTORY IS JUST A
>> WELL, THE PART THAT'S WITH RESPECT TO HISTORY IS JUST A
>> WELL, THE PART THAT'S WITH RESPECT TO HISTORY IS JUST A REFLECTION OF HOW A GOOD A
RESPECT TO HISTORY IS JUST A REFLECTION OF HOW A GOOD A
RESPECT TO HISTORY IS JUST A REFLECTION OF HOW A GOOD A POSITION THE ECONOMY HAS BEEN IN
REFLECTION OF HOW A GOOD A POSITION THE ECONOMY HAS BEEN IN
REFLECTION OF HOW A GOOD A POSITION THE ECONOMY HAS BEEN IN THE LAST YEAR AND A HALF,
POSITION THE ECONOMY HAS BEEN IN THE LAST YEAR AND A HALF,
POSITION THE ECONOMY HAS BEEN IN THE LAST YEAR AND A HALF, BECAUSE ACTUAL CORE INFLATION
THE LAST YEAR AND A HALF, BECAUSE ACTUAL CORE INFLATION
THE LAST YEAR AND A HALF, BECAUSE ACTUAL CORE INFLATION REALLY DOES REFLECT WHERE THE
BECAUSE ACTUAL CORE INFLATION REALLY DOES REFLECT WHERE THE
BECAUSE ACTUAL CORE INFLATION REALLY DOES REFLECT WHERE THE ECONOMY WAS, SAY, WITH A PEAK OF
REALLY DOES REFLECT WHERE THE ECONOMY WAS, SAY, WITH A PEAK OF
REALLY DOES REFLECT WHERE THE ECONOMY WAS, SAY, WITH A PEAK OF SIX QUARTERS AGO AND SO THAT'S
ECONOMY WAS, SAY, WITH A PEAK OF SIX QUARTERS AGO AND SO THAT'S
ECONOMY WAS, SAY, WITH A PEAK OF SIX QUARTERS AGO AND SO THAT'S WHY INFLATION TARGETING IS A
SIX QUARTERS AGO AND SO THAT'S WHY INFLATION TARGETING IS A
SIX QUARTERS AGO AND SO THAT'S WHY INFLATION TARGETING IS A FORWARD LOOKING BUSINESS, SO
WHY INFLATION TARGETING IS A FORWARD LOOKING BUSINESS, SO
WHY INFLATION TARGETING IS A FORWARD LOOKING BUSINESS, SO YOUR QUESTION ABOUT, WELL, HOW
FORWARD LOOKING BUSINESS, SO YOUR QUESTION ABOUT, WELL, HOW
FORWARD LOOKING BUSINESS, SO YOUR QUESTION ABOUT, WELL, HOW COME IT STICKS CLOSE TARGETED IS
YOUR QUESTION ABOUT, WELL, HOW COME IT STICKS CLOSE TARGETED IS
YOUR QUESTION ABOUT, WELL, HOW COME IT STICKS CLOSE TARGETED IS A GOOD ONE.
COME IT STICKS CLOSE TARGETED IS A GOOD ONE.
COME IT STICKS CLOSE TARGETED IS A GOOD ONE. WE KEEP MENTIONING CHART FIVE
A GOOD ONE. WE KEEP MENTIONING CHART FIVE
A GOOD ONE. WE KEEP MENTIONING CHART FIVE BUT IT'S THERE.
WE KEEP MENTIONING CHART FIVE BUT IT'S THERE.
WE KEEP MENTIONING CHART FIVE BUT IT'S THERE. GIVEN WE EXPECT A PICKUP IN
BUT IT'S THERE. GIVEN WE EXPECT A PICKUP IN
BUT IT'S THERE. GIVEN WE EXPECT A PICKUP IN GROWTH IN THE FIRST QUARTER AND
GIVEN WE EXPECT A PICKUP IN GROWTH IN THE FIRST QUARTER AND
GIVEN WE EXPECT A PICKUP IN GROWTH IN THE FIRST QUARTER AND THEN STRONGER IN THE SECOND
GROWTH IN THE FIRST QUARTER AND THEN STRONGER IN THE SECOND
GROWTH IN THE FIRST QUARTER AND THEN STRONGER IN THE SECOND QUARTER, THE OUTPUT GAP THAT'S
THEN STRONGER IN THE SECOND QUARTER, THE OUTPUT GAP THAT'S
THEN STRONGER IN THE SECOND QUARTER, THE OUTPUT GAP THAT'S ONLY JUST OPENED UP STARTS TO
QUARTER, THE OUTPUT GAP THAT'S ONLY JUST OPENED UP STARTS TO
QUARTER, THE OUTPUT GAP THAT'S ONLY JUST OPENED UP STARTS TO CLOSE AND REMAINS VERY SMALL.
ONLY JUST OPENED UP STARTS TO CLOSE AND REMAINS VERY SMALL.
ONLY JUST OPENED UP STARTS TO CLOSE AND REMAINS VERY SMALL. AND SO IT ONLY HAS A VERY SMALL
CLOSE AND REMAINS VERY SMALL. AND SO IT ONLY HAS A VERY SMALL
CLOSE AND REMAINS VERY SMALL. AND SO IT ONLY HAS A VERY SMALL DRAG, EXPECTED DRAG, ON
AND SO IT ONLY HAS A VERY SMALL DRAG, EXPECTED DRAG, ON
AND SO IT ONLY HAS A VERY SMALL DRAG, EXPECTED DRAG, ON INFLATION OVER THE PROJECTION
DRAG, EXPECTED DRAG, ON INFLATION OVER THE PROJECTION
DRAG, EXPECTED DRAG, ON INFLATION OVER THE PROJECTION HORIZON.
INFLATION OVER THE PROJECTION HORIZON.
INFLATION OVER THE PROJECTION HORIZON. AT THE SAME TIME, THERE'S SOME
HORIZON. AT THE SAME TIME, THERE'S SOME
HORIZON. AT THE SAME TIME, THERE'S SOME OFFSETTING FACTORS, INCLUDING
AT THE SAME TIME, THERE'S SOME OFFSETTING FACTORS, INCLUDING
AT THE SAME TIME, THERE'S SOME OFFSETTING FACTORS, INCLUDING THE VERY SMALL EFFECT OF THE
OFFSETTING FACTORS, INCLUDING THE VERY SMALL EFFECT OF THE
OFFSETTING FACTORS, INCLUDING THE VERY SMALL EFFECT OF THE CARBON TAX AND SO IT JUST
THE VERY SMALL EFFECT OF THE CARBON TAX AND SO IT JUST
THE VERY SMALL EFFECT OF THE CARBON TAX AND SO IT JUST WIGGLES AROUND 2 UNTIL THE
CARBON TAX AND SO IT JUST WIGGLES AROUND 2 UNTIL THE
CARBON TAX AND SO IT JUST WIGGLES AROUND 2 UNTIL THE HORIZON.
WIGGLES AROUND 2 UNTIL THE HORIZON.
WIGGLES AROUND 2 UNTIL THE HORIZON. >> I WOULD LIKE TO DIG INTO
HORIZON. >> I WOULD LIKE TO DIG INTO
HORIZON. >> I WOULD LIKE TO DIG INTO KEVIN'S QUESTION MORE ON
>> I WOULD LIKE TO DIG INTO KEVIN'S QUESTION MORE ON
>> I WOULD LIKE TO DIG INTO KEVIN'S QUESTION MORE ON PERSISTENCE.
KEVIN'S QUESTION MORE ON PERSISTENCE.
KEVIN'S QUESTION MORE ON PERSISTENCE. WHAT'S THE RUNWAY HERE?
PERSISTENCE. WHAT'S THE RUNWAY HERE?
PERSISTENCE. WHAT'S THE RUNWAY HERE? IF WEAKNESS SPILLED INTO THE
WHAT'S THE RUNWAY HERE? IF WEAKNESS SPILLED INTO THE
WHAT'S THE RUNWAY HERE? IF WEAKNESS SPILLED INTO THE SECOND QUARTER, WOULD THAT BE
IF WEAKNESS SPILLED INTO THE SECOND QUARTER, WOULD THAT BE
IF WEAKNESS SPILLED INTO THE SECOND QUARTER, WOULD THAT BE ENOUGH TO CALL IT PERSISTENCE?
SECOND QUARTER, WOULD THAT BE ENOUGH TO CALL IT PERSISTENCE?
SECOND QUARTER, WOULD THAT BE ENOUGH TO CALL IT PERSISTENCE? IS THERE A SCOPE BEYOND THAT?
ENOUGH TO CALL IT PERSISTENCE? IS THERE A SCOPE BEYOND THAT?
ENOUGH TO CALL IT PERSISTENCE? IS THERE A SCOPE BEYOND THAT? OR EVEN IF THE FIRST QUARTER IS
IS THERE A SCOPE BEYOND THAT? OR EVEN IF THE FIRST QUARTER IS
IS THERE A SCOPE BEYOND THAT? OR EVEN IF THE FIRST QUARTER IS WORSE THAN EXPECTED OR THERE'S A
OR EVEN IF THE FIRST QUARTER IS WORSE THAN EXPECTED OR THERE'S A
OR EVEN IF THE FIRST QUARTER IS WORSE THAN EXPECTED OR THERE'S A REVISION OF THE FOURTH QUARTER,
WORSE THAN EXPECTED OR THERE'S A REVISION OF THE FOURTH QUARTER,
WORSE THAN EXPECTED OR THERE'S A REVISION OF THE FOURTH QUARTER, IS THERE ANY KIND OF TIME FRAME
REVISION OF THE FOURTH QUARTER, IS THERE ANY KIND OF TIME FRAME
REVISION OF THE FOURTH QUARTER, IS THERE ANY KIND OF TIME FRAME WHERE PERSISTENCE BECOMES A
IS THERE ANY KIND OF TIME FRAME WHERE PERSISTENCE BECOMES A
IS THERE ANY KIND OF TIME FRAME WHERE PERSISTENCE BECOMES A REALITY?
WHERE PERSISTENCE BECOMES A REALITY?
WHERE PERSISTENCE BECOMES A REALITY? >> SO ALL THOSE CONDITIONS WOULD
REALITY? >> SO ALL THOSE CONDITIONS WOULD
REALITY? >> SO ALL THOSE CONDITIONS WOULD APPLY.
>> SO ALL THOSE CONDITIONS WOULD APPLY.
>> SO ALL THOSE CONDITIONS WOULD APPLY. SO WHETHER -- IN A WAY --
APPLY. SO WHETHER -- IN A WAY --
APPLY. SO WHETHER -- IN A WAY -- WHICHEVER SENSE, IF THE FORECAST
SO WHETHER -- IN A WAY -- WHICHEVER SENSE, IF THE FORECAST
SO WHETHER -- IN A WAY -- WHICHEVER SENSE, IF THE FORECAST IS ONE WHICH, AS WE UPDATE IT,
WHICHEVER SENSE, IF THE FORECAST IS ONE WHICH, AS WE UPDATE IT,
WHICHEVER SENSE, IF THE FORECAST IS ONE WHICH, AS WE UPDATE IT, IT GETS REVISED DOWN FURTHER,
IS ONE WHICH, AS WE UPDATE IT, IT GETS REVISED DOWN FURTHER,
IS ONE WHICH, AS WE UPDATE IT, IT GETS REVISED DOWN FURTHER, WITH MEETING AN CUMULATIVELY
IT GETS REVISED DOWN FURTHER, WITH MEETING AN CUMULATIVELY
IT GETS REVISED DOWN FURTHER, WITH MEETING AN CUMULATIVELY LARGER EFFECT.
WITH MEETING AN CUMULATIVELY LARGER EFFECT.
WITH MEETING AN CUMULATIVELY LARGER EFFECT. THAT WOULD PUT AN INCREASED
LARGER EFFECT. THAT WOULD PUT AN INCREASED
LARGER EFFECT. THAT WOULD PUT AN INCREASED DOWNWARD PRESSURE ON INFLATION
THAT WOULD PUT AN INCREASED DOWNWARD PRESSURE ON INFLATION
THAT WOULD PUT AN INCREASED DOWNWARD PRESSURE ON INFLATION AND IT WOULDN'T WIGGLE THE RATE
DOWNWARD PRESSURE ON INFLATION AND IT WOULDN'T WIGGLE THE RATE
DOWNWARD PRESSURE ON INFLATION AND IT WOULDN'T WIGGLE THE RATE AROUND 2%.
AND IT WOULDN'T WIGGLE THE RATE AROUND 2%.
AND IT WOULDN'T WIGGLE THE RATE AROUND 2%. IT WOULD START TO SHOW A LITTLE
AROUND 2%. IT WOULD START TO SHOW A LITTLE
AROUND 2%. IT WOULD START TO SHOW A LITTLE LESS THAN 2%.
IT WOULD START TO SHOW A LITTLE LESS THAN 2%.
IT WOULD START TO SHOW A LITTLE LESS THAN 2%. SO THEN YOU WOULD BEGIN TO
LESS THAN 2%. SO THEN YOU WOULD BEGIN TO
LESS THAN 2%. SO THEN YOU WOULD BEGIN TO FACTOR THAT IN.
SO THEN YOU WOULD BEGIN TO FACTOR THAT IN.
SO THEN YOU WOULD BEGIN TO FACTOR THAT IN. THAT COULD BE BECAUSE Q 4 WAS
FACTOR THAT IN. THAT COULD BE BECAUSE Q 4 WAS
FACTOR THAT IN. THAT COULD BE BECAUSE Q 4 WAS EVEN WEAKER THAN WE WERE
THAT COULD BE BECAUSE Q 4 WAS EVEN WEAKER THAN WE WERE
THAT COULD BE BECAUSE Q 4 WAS EVEN WEAKER THAN WE WERE MONITORING OR Q 1 OR IT COULD
EVEN WEAKER THAN WE WERE MONITORING OR Q 1 OR IT COULD
EVEN WEAKER THAN WE WERE MONITORING OR Q 1 OR IT COULD MOVE INTO Q 2.
MONITORING OR Q 1 OR IT COULD MOVE INTO Q 2.
MONITORING OR Q 1 OR IT COULD MOVE INTO Q 2. SO THIS BUSINESS OF THE
MOVE INTO Q 2. SO THIS BUSINESS OF THE
MOVE INTO Q 2. SO THIS BUSINESS OF THE DYNAMICS, IT'S NOT JUST A
SO THIS BUSINESS OF THE DYNAMICS, IT'S NOT JUST A
SO THIS BUSINESS OF THE DYNAMICS, IT'S NOT JUST A MECHANICAL THING.
DYNAMICS, IT'S NOT JUST A MECHANICAL THING.
DYNAMICS, IT'S NOT JUST A MECHANICAL THING. SO THE Q 4 WERE EXPECTED BIT
MECHANICAL THING. SO THE Q 4 WERE EXPECTED BIT
MECHANICAL THING. SO THE Q 4 WERE EXPECTED BIT EARLY INDICATORS FROM Q 1 WERE
SO THE Q 4 WERE EXPECTED BIT EARLY INDICATORS FROM Q 1 WERE
SO THE Q 4 WERE EXPECTED BIT EARLY INDICATORS FROM Q 1 WERE SHOWING THE REBOUND THAT WE'RE
EARLY INDICATORS FROM Q 1 WERE SHOWING THE REBOUND THAT WE'RE
EARLY INDICATORS FROM Q 1 WERE SHOWING THE REBOUND THAT WE'RE CALLING FOR.
SHOWING THE REBOUND THAT WE'RE CALLING FOR.
SHOWING THE REBOUND THAT WE'RE CALLING FOR. WELL, THAT MEANS YOU DON'T JUST
CALLING FOR. WELL, THAT MEANS YOU DON'T JUST
CALLING FOR. WELL, THAT MEANS YOU DON'T JUST GO MECHANICAL ABOUT IT.
WELL, THAT MEANS YOU DON'T JUST GO MECHANICAL ABOUT IT.
WELL, THAT MEANS YOU DON'T JUST GO MECHANICAL ABOUT IT. SO YOU GET THE MOMENTUM GOES
GO MECHANICAL ABOUT IT. SO YOU GET THE MOMENTUM GOES
GO MECHANICAL ABOUT IT. SO YOU GET THE MOMENTUM GOES BACK TO THE GOOD SIDE AND THEN
SO YOU GET THE MOMENTUM GOES BACK TO THE GOOD SIDE AND THEN
SO YOU GET THE MOMENTUM GOES BACK TO THE GOOD SIDE AND THEN IT'S A VERY POSITIVE
BACK TO THE GOOD SIDE AND THEN IT'S A VERY POSITIVE
BACK TO THE GOOD SIDE AND THEN IT'S A VERY POSITIVE DEVELOPME.
IT'S A VERY POSITIVE DEVELOPME.
IT'S A VERY POSITIVE DEVELOPME. SO AS I SAID, YOU KNOW, A GOOD,
DEVELOPME. SO AS I SAID, YOU KNOW, A GOOD,
DEVELOPME. SO AS I SAID, YOU KNOW, A GOOD, FOR INSTANCE, IS, CONSUMER
SO AS I SAID, YOU KNOW, A GOOD, FOR INSTANCE, IS, CONSUMER
SO AS I SAID, YOU KNOW, A GOOD, FOR INSTANCE, IS, CONSUMER CONFIDENCE WAS WEAK IN THE
FOR INSTANCE, IS, CONSUMER CONFIDENCE WAS WEAK IN THE
FOR INSTANCE, IS, CONSUMER CONFIDENCE WAS WEAK IN THE FOURTH QUARTER, AND YOU COULD
CONFIDENCE WAS WEAK IN THE FOURTH QUARTER, AND YOU COULD
CONFIDENCE WAS WEAK IN THE FOURTH QUARTER, AND YOU COULD POINT TO LOTS OF REASONS WHY IT
FOURTH QUARTER, AND YOU COULD POINT TO LOTS OF REASONS WHY IT
FOURTH QUARTER, AND YOU COULD POINT TO LOTS OF REASONS WHY IT MIGHT BE THE CASE.
POINT TO LOTS OF REASONS WHY IT MIGHT BE THE CASE.
POINT TO LOTS OF REASONS WHY IT MIGHT BE THE CASE. AND MANY OF THEM ARE KIND OF
MIGHT BE THE CASE. AND MANY OF THEM ARE KIND OF
MIGHT BE THE CASE. AND MANY OF THEM ARE KIND OF TEMPORARY REASONS, YOU KNOW.
AND MANY OF THEM ARE KIND OF TEMPORARY REASONS, YOU KNOW.
AND MANY OF THEM ARE KIND OF TEMPORARY REASONS, YOU KNOW. SO A GOOD TEST OF THAT WOULD BE,
TEMPORARY REASONS, YOU KNOW. SO A GOOD TEST OF THAT WOULD BE,
TEMPORARY REASONS, YOU KNOW. SO A GOOD TEST OF THAT WOULD BE, WHAT HAPPENS IS WE GET INTO THE
SO A GOOD TEST OF THAT WOULD BE, WHAT HAPPENS IS WE GET INTO THE
SO A GOOD TEST OF THAT WOULD BE, WHAT HAPPENS IS WE GET INTO THE FIRST PART OF THE NEW YEAR WITH
WHAT HAPPENS IS WE GET INTO THE FIRST PART OF THE NEW YEAR WITH
WHAT HAPPENS IS WE GET INTO THE FIRST PART OF THE NEW YEAR WITH THE DATA, JANUARY, FEBRUARY,
FIRST PART OF THE NEW YEAR WITH THE DATA, JANUARY, FEBRUARY,
FIRST PART OF THE NEW YEAR WITH THE DATA, JANUARY, FEBRUARY, MARCH, IF YOU GET CONSUMER
THE DATA, JANUARY, FEBRUARY, MARCH, IF YOU GET CONSUMER
THE DATA, JANUARY, FEBRUARY, MARCH, IF YOU GET CONSUMER CONFIDENCE GOING BACK TO NORMAL,
MARCH, IF YOU GET CONSUMER CONFIDENCE GOING BACK TO NORMAL,
MARCH, IF YOU GET CONSUMER CONFIDENCE GOING BACK TO NORMAL, THAT WOULD BE A REASSURING
CONFIDENCE GOING BACK TO NORMAL, THAT WOULD BE A REASSURING
CONFIDENCE GOING BACK TO NORMAL, THAT WOULD BE A REASSURING SIGNAL.
THAT WOULD BE A REASSURING SIGNAL.
THAT WOULD BE A REASSURING SIGNAL. THAT WOULD BE ONE.
SIGNAL. THAT WOULD BE ONE.
SIGNAL. THAT WOULD BE ONE. WE MENTIONED RETAIL SALES IN THE
THAT WOULD BE ONE. WE MENTIONED RETAIL SALES IN THE
THAT WOULD BE ONE. WE MENTIONED RETAIL SALES IN THE OPENING REMARKS.
WE MENTIONED RETAIL SALES IN THE OPENING REMARKS.
WE MENTIONED RETAIL SALES IN THE OPENING REMARKS. YOU KNOW, SO WE KNOW THAT WHEN
OPENING REMARKS. YOU KNOW, SO WE KNOW THAT WHEN
OPENING REMARKS. YOU KNOW, SO WE KNOW THAT WHEN YOU BUY SOMETHING ON AMAZON,
YOU KNOW, SO WE KNOW THAT WHEN YOU BUY SOMETHING ON AMAZON,
YOU KNOW, SO WE KNOW THAT WHEN YOU BUY SOMETHING ON AMAZON, WHICH PEOPLE DID A LOT, OVER THE
YOU BUY SOMETHING ON AMAZON, WHICH PEOPLE DID A LOT, OVER THE
YOU BUY SOMETHING ON AMAZON, WHICH PEOPLE DID A LOT, OVER THE CHRISTMAS SEASON, IT'S NOT
WHICH PEOPLE DID A LOT, OVER THE CHRISTMAS SEASON, IT'S NOT
WHICH PEOPLE DID A LOT, OVER THE CHRISTMAS SEASON, IT'S NOT CAPTURED IN CANADIAN RETAIL
CHRISTMAS SEASON, IT'S NOT CAPTURED IN CANADIAN RETAIL
CHRISTMAS SEASON, IT'S NOT CAPTURED IN CANADIAN RETAIL SALES DATA.
CAPTURED IN CANADIAN RETAIL SALES DATA.
CAPTURED IN CANADIAN RETAIL SALES DATA. AND WE KNOW FROM U.S. DATA POINT
SALES DATA. AND WE KNOW FROM U.S. DATA POINT
SALES DATA. AND WE KNOW FROM U.S. DATA POINT THAT RETAIL SALES WERE
AND WE KNOW FROM U.S. DATA POINT THAT RETAIL SALES WERE
AND WE KNOW FROM U.S. DATA POINT THAT RETAIL SALES WERE SPECTACULARLY STRONG IN
THAT RETAIL SALES WERE SPECTACULARLY STRONG IN
THAT RETAIL SALES WERE SPECTACULARLY STRONG IN DECEMBER.
SPECTACULARLY STRONG IN DECEMBER.
SPECTACULARLY STRONG IN DECEMBER. LIKE, 13% GROWTH.
DECEMBER. LIKE, 13% GROWTH.
DECEMBER. LIKE, 13% GROWTH. THAT INCLUDES RETAIL SALES FROM
LIKE, 13% GROWTH. THAT INCLUDES RETAIL SALES FROM
LIKE, 13% GROWTH. THAT INCLUDES RETAIL SALES FROM CANADA, BECAUSE OF, YOU KNOW,
THAT INCLUDES RETAIL SALES FROM CANADA, BECAUSE OF, YOU KNOW,
THAT INCLUDES RETAIL SALES FROM CANADA, BECAUSE OF, YOU KNOW, THE AMAZON CHANNEL, WHICH IS NOT
CANADA, BECAUSE OF, YOU KNOW, THE AMAZON CHANNEL, WHICH IS NOT
CANADA, BECAUSE OF, YOU KNOW, THE AMAZON CHANNEL, WHICH IS NOT A CANADIAN RETAILER.
THE AMAZON CHANNEL, WHICH IS NOT A CANADIAN RETAILER.
THE AMAZON CHANNEL, WHICH IS NOT A CANADIAN RETAILER. SO THAT -- WHAT HAPPENS IS
A CANADIAN RETAILER. SO THAT -- WHAT HAPPENS IS
A CANADIAN RETAILER. SO THAT -- WHAT HAPPENS IS CANADA DOES ITS VERY BEST FOR
SO THAT -- WHAT HAPPENS IS CANADA DOES ITS VERY BEST FOR
SO THAT -- WHAT HAPPENS IS CANADA DOES ITS VERY BEST FOR THAT DEFICIENCY WHEN THEY DO THE
CANADA DOES ITS VERY BEST FOR THAT DEFICIENCY WHEN THEY DO THE
CANADA DOES ITS VERY BEST FOR THAT DEFICIENCY WHEN THEY DO THE NATIONAL COUNTS.
THAT DEFICIENCY WHEN THEY DO THE NATIONAL COUNTS.
THAT DEFICIENCY WHEN THEY DO THE NATIONAL COUNTS. BECAUSE THEN THEY HAVE ALL THE
NATIONAL COUNTS. BECAUSE THEN THEY HAVE ALL THE
NATIONAL COUNTS. BECAUSE THEN THEY HAVE ALL THE IMPORT DATA AND YOUR INCOME DATA
BECAUSE THEN THEY HAVE ALL THE IMPORT DATA AND YOUR INCOME DATA
BECAUSE THEN THEY HAVE ALL THE IMPORT DATA AND YOUR INCOME DATA AND ALL THAT.
IMPORT DATA AND YOUR INCOME DATA AND ALL THAT.
IMPORT DATA AND YOUR INCOME DATA AND ALL THAT. TO RECONCILE THINGS.
AND ALL THAT. TO RECONCILE THINGS.
AND ALL THAT. TO RECONCILE THINGS. BUT FOR THE TIME BEING, CANADIAN
TO RECONCILE THINGS. BUT FOR THE TIME BEING, CANADIAN
TO RECONCILE THINGS. BUT FOR THE TIME BEING, CANADIAN RETAIL SALES HAVE LOOKED SOFT.
BUT FOR THE TIME BEING, CANADIAN RETAIL SALES HAVE LOOKED SOFT.
BUT FOR THE TIME BEING, CANADIAN RETAIL SALES HAVE LOOKED SOFT. SO YOU GOT TO INSERT A LITTLE
RETAIL SALES HAVE LOOKED SOFT. SO YOU GOT TO INSERT A LITTLE
RETAIL SALES HAVE LOOKED SOFT. SO YOU GOT TO INSERT A LITTLE UNCERTAINTY INTO THAT IF THE
SO YOU GOT TO INSERT A LITTLE UNCERTAINTY INTO THAT IF THE
SO YOU GOT TO INSERT A LITTLE UNCERTAINTY INTO THAT IF THE READING SO IF YOU GET THE
UNCERTAINTY INTO THAT IF THE READING SO IF YOU GET THE
UNCERTAINTY INTO THAT IF THE READING SO IF YOU GET THE NATIONAL COUNCIL REASSURES YOU,
READING SO IF YOU GET THE NATIONAL COUNCIL REASSURES YOU,
READING SO IF YOU GET THE NATIONAL COUNCIL REASSURES YOU, THEN -- THOSE ARE THE KIND OF
NATIONAL COUNCIL REASSURES YOU, THEN -- THOSE ARE THE KIND OF
NATIONAL COUNCIL REASSURES YOU, THEN -- THOSE ARE THE KIND OF THINGS THAT CAN REALLY CHANGE
THEN -- THOSE ARE THE KIND OF THINGS THAT CAN REALLY CHANGE
THEN -- THOSE ARE THE KIND OF THINGS THAT CAN REALLY CHANGE THE COLOUR OF THE ANALYSIS.
THINGS THAT CAN REALLY CHANGE THE COLOUR OF THE ANALYSIS.
THINGS THAT CAN REALLY CHANGE THE COLOUR OF THE ANALYSIS. >> Question: THANK YOU,
THE COLOUR OF THE ANALYSIS. >> Question: THANK YOU,
THE COLOUR OF THE ANALYSIS. >> Question: THANK YOU, GOVERNOR, FOR TAKING MY
>> Question: THANK YOU, GOVERNOR, FOR TAKING MY
>> Question: THANK YOU, GOVERNOR, FOR TAKING MY QUESTION.
GOVERNOR, FOR TAKING MY QUESTION.
GOVERNOR, FOR TAKING MY QUESTION. YOU'VE MENTIONED THAT YOU EXPECT
QUESTION. YOU'VE MENTIONED THAT YOU EXPECT
QUESTION. YOU'VE MENTIONED THAT YOU EXPECT A REBOUND IN GROWTH FOR Q 1, BUT
YOU'VE MENTIONED THAT YOU EXPECT A REBOUND IN GROWTH FOR Q 1, BUT
YOU'VE MENTIONED THAT YOU EXPECT A REBOUND IN GROWTH FOR Q 1, BUT IT'S OUR UNDERSTANDING THAT IT'S
A REBOUND IN GROWTH FOR Q 1, BUT IT'S OUR UNDERSTANDING THAT IT'S
A REBOUND IN GROWTH FOR Q 1, BUT IT'S OUR UNDERSTANDING THAT IT'S AT A RATE SLOWER THAN WAS
IT'S OUR UNDERSTANDING THAT IT'S AT A RATE SLOWER THAN WAS
IT'S OUR UNDERSTANDING THAT IT'S AT A RATE SLOWER THAN WAS PREVIOUSLY THOUGHT BY THE BANK.
AT A RATE SLOWER THAN WAS PREVIOUSLY THOUGHT BY THE BANK.
AT A RATE SLOWER THAN WAS PREVIOUSLY THOUGHT BY THE BANK. WHY IS THAT?
PREVIOUSLY THOUGHT BY THE BANK. WHY IS THAT?
PREVIOUSLY THOUGHT BY THE BANK. WHY IS THAT? WHY DO YOU SEE A SLOWER REBOUND
WHY IS THAT? WHY DO YOU SEE A SLOWER REBOUND
WHY IS THAT? WHY DO YOU SEE A SLOWER REBOUND THAN FIRST EXPECTED?
WHY DO YOU SEE A SLOWER REBOUND THAN FIRST EXPECTED?
WHY DO YOU SEE A SLOWER REBOUND THAN FIRST EXPECTED? >> WELL, FOR ALL THE THINGS THAT
THAN FIRST EXPECTED? >> WELL, FOR ALL THE THINGS THAT
THAN FIRST EXPECTED? >> WELL, FOR ALL THE THINGS THAT WE JUST HAVE BEEN MENTIONING.
>> WELL, FOR ALL THE THINGS THAT WE JUST HAVE BEEN MENTIONING.
>> WELL, FOR ALL THE THINGS THAT WE JUST HAVE BEEN MENTIONING. IT'S OFTEN -- SOMETIMES WHEN YOU
WE JUST HAVE BEEN MENTIONING. IT'S OFTEN -- SOMETIMES WHEN YOU
WE JUST HAVE BEEN MENTIONING. IT'S OFTEN -- SOMETIMES WHEN YOU GET A DATA POINT THAT SURPRISES
IT'S OFTEN -- SOMETIMES WHEN YOU GET A DATA POINT THAT SURPRISES
IT'S OFTEN -- SOMETIMES WHEN YOU GET A DATA POINT THAT SURPRISES YOU, YOU CAN FIND SPECIAL
GET A DATA POINT THAT SURPRISES YOU, YOU CAN FIND SPECIAL
GET A DATA POINT THAT SURPRISES YOU, YOU CAN FIND SPECIAL FACTORS AND THINK OH, THE VERY
YOU, YOU CAN FIND SPECIAL FACTORS AND THINK OH, THE VERY
YOU, YOU CAN FIND SPECIAL FACTORS AND THINK OH, THE VERY NEXT TIME I SEE THOSE DATA
FACTORS AND THINK OH, THE VERY NEXT TIME I SEE THOSE DATA
FACTORS AND THINK OH, THE VERY NEXT TIME I SEE THOSE DATA POINTS, IT WILL BE REVERSED.
NEXT TIME I SEE THOSE DATA POINTS, IT WILL BE REVERSED.
NEXT TIME I SEE THOSE DATA POINTS, IT WILL BE REVERSED. OTHER TIMES, YOU SEE THIS AND
POINTS, IT WILL BE REVERSED. OTHER TIMES, YOU SEE THIS AND
POINTS, IT WILL BE REVERSED. OTHER TIMES, YOU SEE THIS AND OTHER THINGS COME TOGETHER.
OTHER TIMES, YOU SEE THIS AND OTHER THINGS COME TOGETHER.
OTHER TIMES, YOU SEE THIS AND OTHER THINGS COME TOGETHER. LIKE I SAID BEFORE, WE DIDN'T
OTHER THINGS COME TOGETHER. LIKE I SAID BEFORE, WE DIDN'T
OTHER THINGS COME TOGETHER. LIKE I SAID BEFORE, WE DIDN'T JUST HAVE SOME WEAK RETAIL
LIKE I SAID BEFORE, WE DIDN'T JUST HAVE SOME WEAK RETAIL
LIKE I SAID BEFORE, WE DIDN'T JUST HAVE SOME WEAK RETAIL SALES.
JUST HAVE SOME WEAK RETAIL SALES.
JUST HAVE SOME WEAK RETAIL SALES. WE HAD WEAK VEHICLE SALES.
SALES. WE HAD WEAK VEHICLE SALES.
SALES. WE HAD WEAK VEHICLE SALES. YOU COULD MEASURE THEM WELL.
WE HAD WEAK VEHICLE SALES. YOU COULD MEASURE THEM WELL.
WE HAD WEAK VEHICLE SALES. YOU COULD MEASURE THEM WELL. WE HAD DECLINING CONSUMER
YOU COULD MEASURE THEM WELL. WE HAD DECLINING CONSUMER
YOU COULD MEASURE THEM WELL. WE HAD DECLINING CONSUMER CONFIDENCE AND YOU CAN MEASURE
WE HAD DECLINING CONSUMER CONFIDENCE AND YOU CAN MEASURE
WE HAD DECLINING CONSUMER CONFIDENCE AND YOU CAN MEASURE THAT QUITE WELL.
CONFIDENCE AND YOU CAN MEASURE THAT QUITE WELL.
CONFIDENCE AND YOU CAN MEASURE THAT QUITE WELL. SO THOSE THINGS FEEL MORE --
THAT QUITE WELL. SO THOSE THINGS FEEL MORE --
THAT QUITE WELL. SO THOSE THINGS FEEL MORE -- THEY'RE NOT JUST SURPRISES.
SO THOSE THINGS FEEL MORE -- THEY'RE NOT JUST SURPRISES.
SO THOSE THINGS FEEL MORE -- THEY'RE NOT JUST SURPRISES. THEY'RE MORE PROFOUND.
THEY'RE NOT JUST SURPRISES. THEY'RE MORE PROFOUND.
THEY'RE NOT JUST SURPRISES. THEY'RE MORE PROFOUND. AND SO THE QUESTION IS: WHAT IS
THEY'RE MORE PROFOUND. AND SO THE QUESTION IS: WHAT IS
THEY'RE MORE PROFOUND. AND SO THE QUESTION IS: WHAT IS DRIVING THAT?
AND SO THE QUESTION IS: WHAT IS DRIVING THAT?
AND SO THE QUESTION IS: WHAT IS DRIVING THAT? SO IT'S MORE BEHAVIOURAL THAN
DRIVING THAT? SO IT'S MORE BEHAVIOURAL THAN
DRIVING THAT? SO IT'S MORE BEHAVIOURAL THAN CAN'T BLAME THAT ON THE WEATHER
SO IT'S MORE BEHAVIOURAL THAN CAN'T BLAME THAT ON THE WEATHER
SO IT'S MORE BEHAVIOURAL THAN CAN'T BLAME THAT ON THE WEATHER PER SE AND THE WEATHER MAY HAVE
CAN'T BLAME THAT ON THE WEATHER PER SE AND THE WEATHER MAY HAVE
CAN'T BLAME THAT ON THE WEATHER PER SE AND THE WEATHER MAY HAVE PLAYED A ROLE AND CONTRIBUTED TO
PER SE AND THE WEATHER MAY HAVE PLAYED A ROLE AND CONTRIBUTED TO
PER SE AND THE WEATHER MAY HAVE PLAYED A ROLE AND CONTRIBUTED TO IT, MAKE IT LOOK WORSE THAN IT
PLAYED A ROLE AND CONTRIBUTED TO IT, MAKE IT LOOK WORSE THAN IT
PLAYED A ROLE AND CONTRIBUTED TO IT, MAKE IT LOOK WORSE THAN IT IS.
IT, MAKE IT LOOK WORSE THAN IT IS.
IT, MAKE IT LOOK WORSE THAN IT IS. SO THAT'S WHY WE -- IT BECOMES A
IS. SO THAT'S WHY WE -- IT BECOMES A
IS. SO THAT'S WHY WE -- IT BECOMES A QUESTION MARK.
SO THAT'S WHY WE -- IT BECOMES A QUESTION MARK.
SO THAT'S WHY WE -- IT BECOMES A QUESTION MARK. AND IN ADDITION, YOU GET AN
QUESTION MARK. AND IN ADDITION, YOU GET AN
QUESTION MARK. AND IN ADDITION, YOU GET AN INVENTORY ADJUSTMENT PROCESS.
AND IN ADDITION, YOU GET AN INVENTORY ADJUSTMENT PROCESS.
AND IN ADDITION, YOU GET AN INVENTORY ADJUSTMENT PROCESS. SO YOU BUY LESS TODAY, THEN THE
INVENTORY ADJUSTMENT PROCESS. SO YOU BUY LESS TODAY, THEN THE
INVENTORY ADJUSTMENT PROCESS. SO YOU BUY LESS TODAY, THEN THE INVENTORIES GO UP AND THE
SO YOU BUY LESS TODAY, THEN THE INVENTORIES GO UP AND THE
SO YOU BUY LESS TODAY, THEN THE INVENTORIES GO UP AND THE SUPPLIERS CAN ORDER LESS IN Q 1,
INVENTORIES GO UP AND THE SUPPLIERS CAN ORDER LESS IN Q 1,
INVENTORIES GO UP AND THE SUPPLIERS CAN ORDER LESS IN Q 1, SO YOU GET THAT -- THE THING
SUPPLIERS CAN ORDER LESS IN Q 1, SO YOU GET THAT -- THE THING
SUPPLIERS CAN ORDER LESS IN Q 1, SO YOU GET THAT -- THE THING ALMOST BY DEFINITION BECOMES A
SO YOU GET THAT -- THE THING ALMOST BY DEFINITION BECOMES A
SO YOU GET THAT -- THE THING ALMOST BY DEFINITION BECOMES A BIT MORE PROLONGED AS EVERYBODY
ALMOST BY DEFINITION BECOMES A BIT MORE PROLONGED AS EVERYBODY
ALMOST BY DEFINITION BECOMES A BIT MORE PROLONGED AS EVERYBODY REACTS TO IT.
BIT MORE PROLONGED AS EVERYBODY REACTS TO IT.
BIT MORE PROLONGED AS EVERYBODY REACTS TO IT. SO AS LONG AS WE CAN UNDERSTAND
REACTS TO IT. SO AS LONG AS WE CAN UNDERSTAND
REACTS TO IT. SO AS LONG AS WE CAN UNDERSTAND THOSE COMPONENTS AND IF WE
SO AS LONG AS WE CAN UNDERSTAND THOSE COMPONENTS AND IF WE
SO AS LONG AS WE CAN UNDERSTAND THOSE COMPONENTS AND IF WE CONTEND THE DYNAMICS ARE AS WE
THOSE COMPONENTS AND IF WE CONTEND THE DYNAMICS ARE AS WE
THOSE COMPONENTS AND IF WE CONTEND THE DYNAMICS ARE AS WE DESCRIBED HERE, WE'LL BE
CONTEND THE DYNAMICS ARE AS WE DESCRIBED HERE, WE'LL BE
CONTEND THE DYNAMICS ARE AS WE DESCRIBED HERE, WE'LL BE CONFIRMING OUR NARRATIVE, BUT
DESCRIBED HERE, WE'LL BE CONFIRMING OUR NARRATIVE, BUT
DESCRIBED HERE, WE'LL BE CONFIRMING OUR NARRATIVE, BUT WE'LL HAVE TO UNDERSTAND EVERY
CONFIRMING OUR NARRATIVE, BUT WE'LL HAVE TO UNDERSTAND EVERY
CONFIRMING OUR NARRATIVE, BUT WE'LL HAVE TO UNDERSTAND EVERY BIT OF IT TO BE -- SO JUST --
WE'LL HAVE TO UNDERSTAND EVERY BIT OF IT TO BE -- SO JUST --
WE'LL HAVE TO UNDERSTAND EVERY BIT OF IT TO BE -- SO JUST -- IT'S JUST THE WAY FORECASTS
BIT OF IT TO BE -- SO JUST -- IT'S JUST THE WAY FORECASTS
BIT OF IT TO BE -- SO JUST -- IT'S JUST THE WAY FORECASTS WORK.
IT'S JUST THE WAY FORECASTS WORK.
IT'S JUST THE WAY FORECASTS WORK. THEY TEND TO HAVE A DYNAMIC TO
WORK. THEY TEND TO HAVE A DYNAMIC TO
WORK. THEY TEND TO HAVE A DYNAMIC TO THEM.
THEY TEND TO HAVE A DYNAMIC TO THEM.
THEY TEND TO HAVE A DYNAMIC TO THEM. DEPENDING WHAT YOUR UNDERLYING
THEM. DEPENDING WHAT YOUR UNDERLYING
THEM. DEPENDING WHAT YOUR UNDERLYING NARRATIVE IS.
DEPENDING WHAT YOUR UNDERLYING NARRATIVE IS.
DEPENDING WHAT YOUR UNDERLYING NARRATIVE IS. IF IT'S BEHAVIOURAL, THEN IT
NARRATIVE IS. IF IT'S BEHAVIOURAL, THEN IT
NARRATIVE IS. IF IT'S BEHAVIOURAL, THEN IT DOESN'T USUALLY END JUST
IF IT'S BEHAVIOURAL, THEN IT DOESN'T USUALLY END JUST
IF IT'S BEHAVIOURAL, THEN IT DOESN'T USUALLY END JUST INSTANTLY.
DOESN'T USUALLY END JUST INSTANTLY.
DOESN'T USUALLY END JUST INSTANTLY. >> YOU'VE CLEARLY LEFT THE DOOR
INSTANTLY. >> YOU'VE CLEARLY LEFT THE DOOR
INSTANTLY. >> YOU'VE CLEARLY LEFT THE DOOR OPEN TO A POSSIBLE RATE CUT IN
>> YOU'VE CLEARLY LEFT THE DOOR OPEN TO A POSSIBLE RATE CUT IN
>> YOU'VE CLEARLY LEFT THE DOOR OPEN TO A POSSIBLE RATE CUT IN THE FUTURE.
OPEN TO A POSSIBLE RATE CUT IN THE FUTURE.
OPEN TO A POSSIBLE RATE CUT IN THE FUTURE. I'M WONDERING, THOUGH, IF IT'S
THE FUTURE. I'M WONDERING, THOUGH, IF IT'S
THE FUTURE. I'M WONDERING, THOUGH, IF IT'S THE RIGHT TIME TO BE CONSIDERING
I'M WONDERING, THOUGH, IF IT'S THE RIGHT TIME TO BE CONSIDERING
I'M WONDERING, THOUGH, IF IT'S THE RIGHT TIME TO BE CONSIDERING A CUT GIVEN THAT THERE'S THIS
THE RIGHT TIME TO BE CONSIDERING A CUT GIVEN THAT THERE'S THIS
THE RIGHT TIME TO BE CONSIDERING A CUT GIVEN THAT THERE'S THIS UNEXPECTED UPTICK IN THE HOUSING
A CUT GIVEN THAT THERE'S THIS UNEXPECTED UPTICK IN THE HOUSING
A CUT GIVEN THAT THERE'S THIS UNEXPECTED UPTICK IN THE HOUSING MARK
UNEXPECTED UPTICK IN THE HOUSING MARK
UNEXPECTED UPTICK IN THE HOUSING MARK >> AS YOU KNOW, THE TARGET FOR
MARK >> AS YOU KNOW, THE TARGET FOR
MARK >> AS YOU KNOW, THE TARGET FOR INFLATION IS IT 2% AND THAT IS
>> AS YOU KNOW, THE TARGET FOR INFLATION IS IT 2% AND THAT IS
>> AS YOU KNOW, THE TARGET FOR INFLATION IS IT 2% AND THAT IS OUR TARGET.
INFLATION IS IT 2% AND THAT IS OUR TARGET.
INFLATION IS IT 2% AND THAT IS OUR TARGET. BUT AS I SAID EARLIER, IT HAS TO
OUR TARGET. BUT AS I SAID EARLIER, IT HAS TO
OUR TARGET. BUT AS I SAID EARLIER, IT HAS TO BE A FORWARD LOOKING EXERCISE
BUT AS I SAID EARLIER, IT HAS TO BE A FORWARD LOOKING EXERCISE
BUT AS I SAID EARLIER, IT HAS TO BE A FORWARD LOOKING EXERCISE WHERE DID HIS NOT -- IT HELPS TO
BE A FORWARD LOOKING EXERCISE WHERE DID HIS NOT -- IT HELPS TO
BE A FORWARD LOOKING EXERCISE WHERE DID HIS NOT -- IT HELPS TO KNOW THAT INFLATION'S THE 2
WHERE DID HIS NOT -- IT HELPS TO KNOW THAT INFLATION'S THE 2
WHERE DID HIS NOT -- IT HELPS TO KNOW THAT INFLATION'S THE 2 TODAY BECAUSE THAT GIVES US A
KNOW THAT INFLATION'S THE 2 TODAY BECAUSE THAT GIVES US A
KNOW THAT INFLATION'S THE 2 TODAY BECAUSE THAT GIVES US A GOOD STARTING POINT.
TODAY BECAUSE THAT GIVES US A GOOD STARTING POINT.
TODAY BECAUSE THAT GIVES US A GOOD STARTING POINT. AT THE SAME TIME, WE KNOW THERE
GOOD STARTING POINT. AT THE SAME TIME, WE KNOW THERE
GOOD STARTING POINT. AT THE SAME TIME, WE KNOW THERE ARE MANY THINGS THAT CAN HAPPEN.
AT THE SAME TIME, WE KNOW THERE ARE MANY THINGS THAT CAN HAPPEN.
AT THE SAME TIME, WE KNOW THERE ARE MANY THINGS THAT CAN HAPPEN. WHEN IT COMES TO ECONOMIC BOTH,
ARE MANY THINGS THAT CAN HAPPEN. WHEN IT COMES TO ECONOMIC BOTH,
ARE MANY THINGS THAT CAN HAPPEN. WHEN IT COMES TO ECONOMIC BOTH, WE JUST TALKED ABOUT, WE SEE A
WHEN IT COMES TO ECONOMIC BOTH, WE JUST TALKED ABOUT, WE SEE A
WHEN IT COMES TO ECONOMIC BOTH, WE JUST TALKED ABOUT, WE SEE A REBOUND COMING.
WE JUST TALKED ABOUT, WE SEE A REBOUND COMING.
WE JUST TALKED ABOUT, WE SEE A REBOUND COMING. WE DON'T THINK THAT THE WEAKNESS
REBOUND COMING. WE DON'T THINK THAT THE WEAKNESS
REBOUND COMING. WE DON'T THINK THAT THE WEAKNESS IN THE MIXED DATA THAT WE SAW
WE DON'T THINK THAT THE WEAKNESS IN THE MIXED DATA THAT WE SAW
WE DON'T THINK THAT THE WEAKNESS IN THE MIXED DATA THAT WE SAW LATER LAST YEAR IS GOING TO BE
IN THE MIXED DATA THAT WE SAW LATER LAST YEAR IS GOING TO BE
IN THE MIXED DATA THAT WE SAW LATER LAST YEAR IS GOING TO BE PERSISTENT.
LATER LAST YEAR IS GOING TO BE PERSISTENT.
LATER LAST YEAR IS GOING TO BE PERSISTENT. BUT IT'S IMPORTANT THAT WE
PERSISTENT. BUT IT'S IMPORTANT THAT WE
PERSISTENT. BUT IT'S IMPORTANT THAT WE CONTINUE TO LOOK AT THAT.
BUT IT'S IMPORTANT THAT WE CONTINUE TO LOOK AT THAT.
BUT IT'S IMPORTANT THAT WE CONTINUE TO LOOK AT THAT. AT THE SAME TIME, THERE'S THIS
CONTINUE TO LOOK AT THAT. AT THE SAME TIME, THERE'S THIS
CONTINUE TO LOOK AT THAT. AT THE SAME TIME, THERE'S THIS TRADEOFF THAT YOU MENTIONED
AT THE SAME TIME, THERE'S THIS TRADEOFF THAT YOU MENTIONED
AT THE SAME TIME, THERE'S THIS TRADEOFF THAT YOU MENTIONED ABOUT VULNERABILITIES.
TRADEOFF THAT YOU MENTIONED ABOUT VULNERABILITIES.
TRADEOFF THAT YOU MENTIONED ABOUT VULNERABILITIES. WHAT THOSE REALLY ARE WITH
ABOUT VULNERABILITIES. WHAT THOSE REALLY ARE WITH
ABOUT VULNERABILITIES. WHAT THOSE REALLY ARE WITH RESPECT TO WHERE WE THINK OR HOW
WHAT THOSE REALLY ARE WITH RESPECT TO WHERE WE THINK OR HOW
WHAT THOSE REALLY ARE WITH RESPECT TO WHERE WE THINK OR HOW WELL WE THINK WE CAN CONTROL
RESPECT TO WHERE WE THINK OR HOW WELL WE THINK WE CAN CONTROL
RESPECT TO WHERE WE THINK OR HOW WELL WE THINK WE CAN CONTROL INFLATION IN THE FUTURE BECAUSE
WELL WE THINK WE CAN CONTROL INFLATION IN THE FUTURE BECAUSE
WELL WE THINK WE CAN CONTROL INFLATION IN THE FUTURE BECAUSE IF WE CONTRIBUTE TO HOUSEHOLD
INFLATION IN THE FUTURE BECAUSE IF WE CONTRIBUTE TO HOUSEHOLD
INFLATION IN THE FUTURE BECAUSE IF WE CONTRIBUTE TO HOUSEHOLD VULNERABILITIES, WE'RE MORE THAN
IF WE CONTRIBUTE TO HOUSEHOLD VULNERABILITIES, WE'RE MORE THAN
IF WE CONTRIBUTE TO HOUSEHOLD VULNERABILITIES, WE'RE MORE THAN AY.
VULNERABILITIES, WE'RE MORE THAN AY.
VULNERABILITIES, WE'RE MORE THAN AY. THAT COULD MEAN FURTHER DOWN THE
AY. THAT COULD MEAN FURTHER DOWN THE
AY. THAT COULD MEAN FURTHER DOWN THE ROAD, IF WE HAVE WHEN THEY GOT
THAT COULD MEAN FURTHER DOWN THE ROAD, IF WE HAVE WHEN THEY GOT
THAT COULD MEAN FURTHER DOWN THE ROAD, IF WE HAVE WHEN THEY GOT SOMETHING SLOW, WE COULD BE IN A
ROAD, IF WE HAVE WHEN THEY GOT SOMETHING SLOW, WE COULD BE IN A
ROAD, IF WE HAVE WHEN THEY GOT SOMETHING SLOW, WE COULD BE IN A TOUGH POSITION ACHIEVING MUCH
SOMETHING SLOW, WE COULD BE IN A TOUGH POSITION ACHIEVING MUCH
SOMETHING SLOW, WE COULD BE IN A TOUGH POSITION ACHIEVING MUCH FURTHER AWAY.
TOUGH POSITION ACHIEVING MUCH FURTHER AWAY.
TOUGH POSITION ACHIEVING MUCH FURTHER AWAY. WE HAD TO BALANCE THAT, GETTING
FURTHER AWAY. WE HAD TO BALANCE THAT, GETTING
FURTHER AWAY. WE HAD TO BALANCE THAT, GETTING OUR INFLATION BANG ON TODAY.
WE HAD TO BALANCE THAT, GETTING OUR INFLATION BANG ON TODAY.
WE HAD TO BALANCE THAT, GETTING OUR INFLATION BANG ON TODAY. ONE THING WITH VULNERABILITIES,
OUR INFLATION BANG ON TODAY. ONE THING WITH VULNERABILITIES,
OUR INFLATION BANG ON TODAY. ONE THING WITH VULNERABILITIES, IS THAT WE DO SEE THAT THEY HAVE
ONE THING WITH VULNERABILITIES, IS THAT WE DO SEE THAT THEY HAVE
ONE THING WITH VULNERABILITIES, IS THAT WE DO SEE THAT THEY HAVE HOUSING MARKET.
IS THAT WE DO SEE THAT THEY HAVE HOUSING MARKET.
IS THAT WE DO SEE THAT THEY HAVE HOUSING MARKET. WE DON'T SEE WE SEE MORE SAVINGS
HOUSING MARKET. WE DON'T SEE WE SEE MORE SAVINGS
HOUSING MARKET. WE DON'T SEE WE SEE MORE SAVINGS THAN WE THOUGHT.
WE DON'T SEE WE SEE MORE SAVINGS THAN WE THOUGHT.
WE DON'T SEE WE SEE MORE SAVINGS THAN WE THOUGHT. AGAIN, THAT'S IMPORTANT
THAN WE THOUGHT. AGAIN, THAT'S IMPORTANT
THAN WE THOUGHT. AGAIN, THAT'S IMPORTANT INFORMATION.
AGAIN, THAT'S IMPORTANT INFORMATION.
AGAIN, THAT'S IMPORTANT INFORMATION. THESE TRADEOFFS ARE SOMETHING
INFORMATION. THESE TRADEOFFS ARE SOMETHING
INFORMATION. THESE TRADEOFFS ARE SOMETHING THEY'RE CAST IN STONE.
THESE TRADEOFFS ARE SOMETHING THEY'RE CAST IN STONE.
THESE TRADEOFFS ARE SOMETHING THEY'RE CAST IN STONE. SOMETHING TO CHANGE OVER TIME.
THEY'RE CAST IN STONE. SOMETHING TO CHANGE OVER TIME.
THEY'RE CAST IN STONE. SOMETHING TO CHANGE OVER TIME. THE DATA ON THE ECONOMY.
SOMETHING TO CHANGE OVER TIME. THE DATA ON THE ECONOMY.
SOMETHING TO CHANGE OVER TIME. THE DATA ON THE ECONOMY. >> GOING TO HEALTHER AND GLORIA.
THE DATA ON THE ECONOMY. >> GOING TO HEALTHER AND GLORIA.
THE DATA ON THE ECONOMY. >> GOING TO HEALTHER AND GLORIA. >> GOOD MORNING.
>> GOING TO HEALTHER AND GLORIA. >> GOOD MORNING.
>> GOING TO HEALTHER AND GLORIA. >> GOOD MORNING. WHEN YOU'RE LOOKING AT THE
>> GOOD MORNING. WHEN YOU'RE LOOKING AT THE
>> GOOD MORNING. WHEN YOU'RE LOOKING AT THE BIGGER RISK OUT THERE, CONSUMER
WHEN YOU'RE LOOKING AT THE BIGGER RISK OUT THERE, CONSUMER
WHEN YOU'RE LOOKING AT THE BIGGER RISK OUT THERE, CONSUMER CONFIDENCE AND THE FACT THAT
BIGGER RISK OUT THERE, CONSUMER CONFIDENCE AND THE FACT THAT
BIGGER RISK OUT THERE, CONSUMER CONFIDENCE AND THE FACT THAT THERE'S IT COULD BE RATIFIED
CONFIDENCE AND THE FACT THAT THERE'S IT COULD BE RATIFIED
CONFIDENCE AND THE FACT THAT THERE'S IT COULD BE RATIFIED INLINE AND U.S. BUT WE'VE GOT
THERE'S IT COULD BE RATIFIED INLINE AND U.S. BUT WE'VE GOT
THERE'S IT COULD BE RATIFIED INLINE AND U.S. BUT WE'VE GOT MIDDLE EAST ON THE RISE,OFF SET
INLINE AND U.S. BUT WE'VE GOT MIDDLE EAST ON THE RISE,OFF SET
INLINE AND U.S. BUT WE'VE GOT MIDDLE EAST ON THE RISE,OFF SET EACH OTHER IN TERMS OF TURMOIL.
MIDDLE EAST ON THE RISE,OFF SET EACH OTHER IN TERMS OF TURMOIL.
MIDDLE EAST ON THE RISE,OFF SET EACH OTHER IN TERMS OF TURMOIL. >> WELL, YOU WOULD NOTICE RISK
EACH OTHER IN TERMS OF TURMOIL. >> WELL, YOU WOULD NOTICE RISK
EACH OTHER IN TERMS OF TURMOIL. >> WELL, YOU WOULD NOTICE RISK AND ASSESSMENT ARE BACK.
>> WELL, YOU WOULD NOTICE RISK AND ASSESSMENT ARE BACK.
>> WELL, YOU WOULD NOTICE RISK AND ASSESSMENT ARE BACK. AND THE TRADE SIDE WAS IN THE
AND ASSESSMENT ARE BACK. AND THE TRADE SIDE WAS IN THE
AND ASSESSMENT ARE BACK. AND THE TRADE SIDE WAS IN THE WHAT WE CALL THE ATTIC OR THE
AND THE TRADE SIDE WAS IN THE WHAT WE CALL THE ATTIC OR THE
AND THE TRADE SIDE WAS IN THE WHAT WE CALL THE ATTIC OR THE TOP PART OF THE RISK.
WHAT WE CALL THE ATTIC OR THE TOP PART OF THE RISK.
WHAT WE CALL THE ATTIC OR THE TOP PART OF THE RISK. TO TAKE ALL THAT RISK INTO THE
TOP PART OF THE RISK. TO TAKE ALL THAT RISK INTO THE
TOP PART OF THE RISK. TO TAKE ALL THAT RISK INTO THE FORECAST.
TO TAKE ALL THAT RISK INTO THE FORECAST.
TO TAKE ALL THAT RISK INTO THE FORECAST. THIS IS AN IMPORTANT ELEMENT OF
FORECAST. THIS IS AN IMPORTANT ELEMENT OF
FORECAST. THIS IS AN IMPORTANT ELEMENT OF THE FORECASTER'S JOB WHICH
THIS IS AN IMPORTANT ELEMENT OF THE FORECASTER'S JOB WHICH
THIS IS AN IMPORTANT ELEMENT OF THE FORECASTER'S JOB WHICH PRESENTS US A BALANCED FORECAST
THE FORECASTER'S JOB WHICH PRESENTS US A BALANCED FORECAST
THE FORECASTER'S JOB WHICH PRESENTS US A BALANCED FORECAST ONE IN WHICH THAT'S UP SIDE AND
PRESENTS US A BALANCED FORECAST ONE IN WHICH THAT'S UP SIDE AND
PRESENTS US A BALANCED FORECAST ONE IN WHICH THAT'S UP SIDE AND DOWN SIDE.
ONE IN WHICH THAT'S UP SIDE AND DOWN SIDE.
ONE IN WHICH THAT'S UP SIDE AND DOWN SIDE. CERTAIN RISKS ARE HARD TO
DOWN SIDE. CERTAIN RISKS ARE HARD TO
DOWN SIDE. CERTAIN RISKS ARE HARD TO IDENTIFY OR MEASURE THEIR IMPACT
CERTAIN RISKS ARE HARD TO IDENTIFY OR MEASURE THEIR IMPACT
CERTAIN RISKS ARE HARD TO IDENTIFY OR MEASURE THEIR IMPACT OR TO PREDICT HOW THEY MIGHT
IDENTIFY OR MEASURE THEIR IMPACT OR TO PREDICT HOW THEY MIGHT
IDENTIFY OR MEASURE THEIR IMPACT OR TO PREDICT HOW THEY MIGHT SHOW UP.
OR TO PREDICT HOW THEY MIGHT SHOW UP.
OR TO PREDICT HOW THEY MIGHT SHOW UP. WE CALL THEM FELL RISK AND IS IF
SHOW UP. WE CALL THEM FELL RISK AND IS IF
SHOW UP. WE CALL THEM FELL RISK AND IS IF THEY CAME, YOU WOULD HAVE TO
WE CALL THEM FELL RISK AND IS IF THEY CAME, YOU WOULD HAVE TO
WE CALL THEM FELL RISK AND IS IF THEY CAME, YOU WOULD HAVE TO REWRITE YOUR WHOLE FORECAST.
THEY CAME, YOU WOULD HAVE TO REWRITE YOUR WHOLE FORECAST.
THEY CAME, YOU WOULD HAVE TO REWRITE YOUR WHOLE FORECAST. SO THEY'RE KIND OF EXCLUDED FROM
REWRITE YOUR WHOLE FORECAST. SO THEY'RE KIND OF EXCLUDED FROM
REWRITE YOUR WHOLE FORECAST. SO THEY'RE KIND OF EXCLUDED FROM THAT BALANCE.
SO THEY'RE KIND OF EXCLUDED FROM THAT BALANCE.
SO THEY'RE KIND OF EXCLUDED FROM THAT BALANCE. THAT'S WHERE TRADE WAS BEFORE.
THAT BALANCE. THAT'S WHERE TRADE WAS BEFORE.
THAT BALANCE. THAT'S WHERE TRADE WAS BEFORE. WHAT WE'RE SAYING NOW IS THAT,
THAT'S WHERE TRADE WAS BEFORE. WHAT WE'RE SAYING NOW IS THAT,
THAT'S WHERE TRADE WAS BEFORE. WHAT WE'RE SAYING NOW IS THAT, OKAY, NOW WE'VE SEEN SOME
WHAT WE'RE SAYING NOW IS THAT, OKAY, NOW WE'VE SEEN SOME
WHAT WE'RE SAYING NOW IS THAT, OKAY, NOW WE'VE SEEN SOME MEANINGFUL PROGRESS, ESPECIALLY
OKAY, NOW WE'VE SEEN SOME MEANINGFUL PROGRESS, ESPECIALLY
OKAY, NOW WE'VE SEEN SOME MEANINGFUL PROGRESS, ESPECIALLY SINCE THE MAIN CHANNEL BY WHICH
MEANINGFUL PROGRESS, ESPECIALLY SINCE THE MAIN CHANNEL BY WHICH
MEANINGFUL PROGRESS, ESPECIALLY SINCE THE MAIN CHANNEL BY WHICH ALL THIS TURMOIL ON THE TRADE
SINCE THE MAIN CHANNEL BY WHICH ALL THIS TURMOIL ON THE TRADE
SINCE THE MAIN CHANNEL BY WHICH ALL THIS TURMOIL ON THE TRADE FRONT HAS BEEN AFFECTING US IS
ALL THIS TURMOIL ON THE TRADE FRONT HAS BEEN AFFECTING US IS
ALL THIS TURMOIL ON THE TRADE FRONT HAS BEEN AFFECTING US IS -- AND OTHER COUNTRIES TOO, IS
FRONT HAS BEEN AFFECTING US IS -- AND OTHER COUNTRIES TOO, IS
FRONT HAS BEEN AFFECTING US IS -- AND OTHER COUNTRIES TOO, IS THROUGH THE INVESTMENT CHANNEL.
-- AND OTHER COUNTRIES TOO, IS THROUGH THE INVESTMENT CHANNEL.
-- AND OTHER COUNTRIES TOO, IS THROUGH THE INVESTMENT CHANNEL. NOT SO MUCH ABOUT TRADE, FACT
THROUGH THE INVESTMENT CHANNEL. NOT SO MUCH ABOUT TRADE, FACT
THROUGH THE INVESTMENT CHANNEL. NOT SO MUCH ABOUT TRADE, FACT THAT TRADE INDICATORS HAVE
NOT SO MUCH ABOUT TRADE, FACT THAT TRADE INDICATORS HAVE
NOT SO MUCH ABOUT TRADE, FACT THAT TRADE INDICATORS HAVE SLOWED A LOT, IT'S MAINLY
THAT TRADE INDICATORS HAVE SLOWED A LOT, IT'S MAINLY
THAT TRADE INDICATORS HAVE SLOWED A LOT, IT'S MAINLY BECAUSE INVESTMENT HAS SLOWED A
SLOWED A LOT, IT'S MAINLY BECAUSE INVESTMENT HAS SLOWED A
SLOWED A LOT, IT'S MAINLY BECAUSE INVESTMENT HAS SLOWED A LO
BECAUSE INVESTMENT HAS SLOWED A LO
BECAUSE INVESTMENT HAS SLOWED A LO AND INVESTMENT IS A HIGHLY
LO AND INVESTMENT IS A HIGHLY
LO AND INVESTMENT IS A HIGHLY TRADE-DEPENDENT ACTIVITY.
AND INVESTMENT IS A HIGHLY TRADE-DEPENDENT ACTIVITY.
AND INVESTMENT IS A HIGHLY TRADE-DEPENDENT ACTIVITY. CAPITAL GOODS CROSSING THE
TRADE-DEPENDENT ACTIVITY. CAPITAL GOODS CROSSING THE
TRADE-DEPENDENT ACTIVITY. CAPITAL GOODS CROSSING THE GLOBE.
CAPITAL GOODS CROSSING THE GLOBE.
CAPITAL GOODS CROSSING THE GLOBE. SO THEY GO HAND IN HAND.
GLOBE. SO THEY GO HAND IN HAND.
GLOBE. SO THEY GO HAND IN HAND. SO THE REST HAS BEEN SORT OF
SO THEY GO HAND IN HAND. SO THE REST HAS BEEN SORT OF
SO THEY GO HAND IN HAND. SO THE REST HAS BEEN SORT OF MORE TRADE DISTORTING.
SO THE REST HAS BEEN SORT OF MORE TRADE DISTORTING.
SO THE REST HAS BEEN SORT OF MORE TRADE DISTORTING. SETTING THAT ASIDE THEN, WE
MORE TRADE DISTORTING. SETTING THAT ASIDE THEN, WE
MORE TRADE DISTORTING. SETTING THAT ASIDE THEN, WE THINK NOW WE CAN MANAGE THAT
SETTING THAT ASIDE THEN, WE THINK NOW WE CAN MANAGE THAT
SETTING THAT ASIDE THEN, WE THINK NOW WE CAN MANAGE THAT RISK WITHIN OUR RISK ASSESSMENT.
THINK NOW WE CAN MANAGE THAT RISK WITHIN OUR RISK ASSESSMENT.
THINK NOW WE CAN MANAGE THAT RISK WITHIN OUR RISK ASSESSMENT. THE ONE THING THAT WE COULDN'T
RISK WITHIN OUR RISK ASSESSMENT. THE ONE THING THAT WE COULDN'T
RISK WITHIN OUR RISK ASSESSMENT. THE ONE THING THAT WE COULDN'T REALLY MANAGE IS THIS INCREASED,
THE ONE THING THAT WE COULDN'T REALLY MANAGE IS THIS INCREASED,
THE ONE THING THAT WE COULDN'T REALLY MANAGE IS THIS INCREASED, I GUESS, RISK OR INCREASED
REALLY MANAGE IS THIS INCREASED, I GUESS, RISK OR INCREASED
REALLY MANAGE IS THIS INCREASED, I GUESS, RISK OR INCREASED UNCERTAINTY AROUND DEVELOPMENTS
I GUESS, RISK OR INCREASED UNCERTAINTY AROUND DEVELOPMENTS
I GUESS, RISK OR INCREASED UNCERTAINTY AROUND DEVELOPMENTS IN THE GEOPOLITICAL DEVELOPMENTS
UNCERTAINTY AROUND DEVELOPMENTS IN THE GEOPOLITICAL DEVELOPMENTS
UNCERTAINTY AROUND DEVELOPMENTS IN THE GEOPOLITICAL DEVELOPMENTS IN THE MIDDLE EAST.
IN THE GEOPOLITICAL DEVELOPMENTS IN THE MIDDLE EAST.
IN THE GEOPOLITICAL DEVELOPMENTS IN THE MIDDLE EAST. AND WHAT THAT MIGHT MEAN FOR OUR
IN THE MIDDLE EAST. AND WHAT THAT MIGHT MEAN FOR OUR
IN THE MIDDLE EAST. AND WHAT THAT MIGHT MEAN FOR OUR FORECAST.
AND WHAT THAT MIGHT MEAN FOR OUR FORECAST.
AND WHAT THAT MIGHT MEAN FOR OUR FORECAST. THAT GOES INTO THE RISKS AND IS
FORECAST. THAT GOES INTO THE RISKS AND IS
FORECAST. THAT GOES INTO THE RISKS AND IS NOT COUNTERED IN THE FORECAST.
THAT GOES INTO THE RISKS AND IS NOT COUNTERED IN THE FORECAST.
THAT GOES INTO THE RISKS AND IS NOT COUNTERED IN THE FORECAST. QUICK ANSWER TO YOUR QUESTION
NOT COUNTERED IN THE FORECAST. QUICK ANSWER TO YOUR QUESTION
NOT COUNTERED IN THE FORECAST. QUICK ANSWER TO YOUR QUESTION IS, NO, THEY AREN'T OFFSIDE AT
QUICK ANSWER TO YOUR QUESTION IS, NO, THEY AREN'T OFFSIDE AT
QUICK ANSWER TO YOUR QUESTION IS, NO, THEY AREN'T OFFSIDE AT ALL.
IS, NO, THEY AREN'T OFFSIDE AT ALL.
IS, NO, THEY AREN'T OFFSIDE AT ALL. THEY CAN'T REALLY BE QUANTIFIED
ALL. THEY CAN'T REALLY BE QUANTIFIED
ALL. THEY CAN'T REALLY BE QUANTIFIED IN A WAY THAT WOULD ALLOW YOU TO
THEY CAN'T REALLY BE QUANTIFIED IN A WAY THAT WOULD ALLOW YOU TO
THEY CAN'T REALLY BE QUANTIFIED IN A WAY THAT WOULD ALLOW YOU TO DO THAT.
IN A WAY THAT WOULD ALLOW YOU TO DO THAT.
IN A WAY THAT WOULD ALLOW YOU TO DO THAT. BUT WE DO THINK THAT THE
DO THAT. BUT WE DO THINK THAT THE
DO THAT. BUT WE DO THINK THAT THE PROGRESS HAS BEEN MADE.
BUT WE DO THINK THAT THE PROGRESS HAS BEEN MADE.
BUT WE DO THINK THAT THE PROGRESS HAS BEEN MADE. WE OUGHT TO BE ABLE TO SEE NOW
PROGRESS HAS BEEN MADE. WE OUGHT TO BE ABLE TO SEE NOW
PROGRESS HAS BEEN MADE. WE OUGHT TO BE ABLE TO SEE NOW SOME RESPONSE FROM INVESTMENT.
WE OUGHT TO BE ABLE TO SEE NOW SOME RESPONSE FROM INVESTMENT.
WE OUGHT TO BE ABLE TO SEE NOW SOME RESPONSE FROM INVESTMENT. OUR BOSS TELLS US THAT COMPANIES
SOME RESPONSE FROM INVESTMENT. OUR BOSS TELLS US THAT COMPANIES
SOME RESPONSE FROM INVESTMENT. OUR BOSS TELLS US THAT COMPANIES IN CANADA ARE VERY READY, HAVE
OUR BOSS TELLS US THAT COMPANIES IN CANADA ARE VERY READY, HAVE
OUR BOSS TELLS US THAT COMPANIES IN CANADA ARE VERY READY, HAVE BEEN FOR SOME TIME, TO INVEST.
IN CANADA ARE VERY READY, HAVE BEEN FOR SOME TIME, TO INVEST.
IN CANADA ARE VERY READY, HAVE BEEN FOR SOME TIME, TO INVEST. AND THAT THE BIG THING HOLDING
BEEN FOR SOME TIME, TO INVEST. AND THAT THE BIG THING HOLDING
BEEN FOR SOME TIME, TO INVEST. AND THAT THE BIG THING HOLDING THEM BACK HAS BEEN THE
AND THAT THE BIG THING HOLDING THEM BACK HAS BEEN THE
AND THAT THE BIG THING HOLDING THEM BACK HAS BEEN THE UNCERTAINTY AROUND THE FUTURE OF
THEM BACK HAS BEEN THE UNCERTAINTY AROUND THE FUTURE OF
THEM BACK HAS BEEN THE UNCERTAINTY AROUND THE FUTURE OF NAFTA/KUZMA, SO IF WE CAN GET
UNCERTAINTY AROUND THE FUTURE OF NAFTA/KUZMA, SO IF WE CAN GET
UNCERTAINTY AROUND THE FUTURE OF NAFTA/KUZMA, SO IF WE CAN GET THAT RATIFICATION DONE, I THINK
NAFTA/KUZMA, SO IF WE CAN GET THAT RATIFICATION DONE, I THINK
NAFTA/KUZMA, SO IF WE CAN GET THAT RATIFICATION DONE, I THINK THAT'S GOING TO MAKE A
THAT RATIFICATION DONE, I THINK THAT'S GOING TO MAKE A
THAT RATIFICATION DONE, I THINK THAT'S GOING TO MAKE A MEANINGFUL DIFFERENCE TO
THAT'S GOING TO MAKE A MEANINGFUL DIFFERENCE TO
THAT'S GOING TO MAKE A MEANINGFUL DIFFERENCE TO INVESTMENT IN CANADA.
MEANINGFUL DIFFERENCE TO INVESTMENT IN CANADA.
MEANINGFUL DIFFERENCE TO INVESTMENT IN CANADA. WE ONLY ACKNOWLEDGE THAT
INVESTMENT IN CANADA. WE ONLY ACKNOWLEDGE THAT
INVESTMENT IN CANADA. WE ONLY ACKNOWLEDGE THAT SLIGHTLY IN OUR OUTLOOK.
WE ONLY ACKNOWLEDGE THAT SLIGHTLY IN OUR OUTLOOK.
WE ONLY ACKNOWLEDGE THAT SLIGHTLY IN OUR OUTLOOK. WE'RE NOT ASSUMING IT'S GOING TO
SLIGHTLY IN OUR OUTLOOK. WE'RE NOT ASSUMING IT'S GOING TO
SLIGHTLY IN OUR OUTLOOK. WE'RE NOT ASSUMING IT'S GOING TO SUDDENLY BE GREAT.
WE'RE NOT ASSUMING IT'S GOING TO SUDDENLY BE GREAT.
WE'RE NOT ASSUMING IT'S GOING TO SUDDENLY BE GREAT. BUT IF YOU LOOK, THERE'S A CHART
SUDDENLY BE GREAT. BUT IF YOU LOOK, THERE'S A CHART
SUDDENLY BE GREAT. BUT IF YOU LOOK, THERE'S A CHART IN THERE, I FORGET THE NUMBER OF
BUT IF YOU LOOK, THERE'S A CHART IN THERE, I FORGET THE NUMBER OF
BUT IF YOU LOOK, THERE'S A CHART IN THERE, I FORGET THE NUMBER OF THAT CHART.
IN THERE, I FORGET THE NUMBER OF THAT CHART.
IN THERE, I FORGET THE NUMBER OF THAT CHART. ANYWAY, THE ONE WHICH SHOWS
THAT CHART. ANYWAY, THE ONE WHICH SHOWS
THAT CHART. ANYWAY, THE ONE WHICH SHOWS INVESTMENT, WHAT IT WILL LOOK
ANYWAY, THE ONE WHICH SHOWS INVESTMENT, WHAT IT WILL LOOK
ANYWAY, THE ONE WHICH SHOWS INVESTMENT, WHAT IT WILL LOOK LIKE ON OUR MODEL, BASED ON WHAT
INVESTMENT, WHAT IT WILL LOOK LIKE ON OUR MODEL, BASED ON WHAT
INVESTMENT, WHAT IT WILL LOOK LIKE ON OUR MODEL, BASED ON WHAT IT LOOKS LIKE NOW.
LIKE ON OUR MODEL, BASED ON WHAT IT LOOKS LIKE NOW.
LIKE ON OUR MODEL, BASED ON WHAT IT LOOKS LIKE NOW. THAT GAP IS PROPOSING $10
IT LOOKS LIKE NOW. THAT GAP IS PROPOSING $10
IT LOOKS LIKE NOW. THAT GAP IS PROPOSING $10 BILLION.
THAT GAP IS PROPOSING $10 BILLION.
THAT GAP IS PROPOSING $10 BILLION. THAT'S A LOT OF EXTRA KICK OF UP
BILLION. THAT'S A LOT OF EXTRA KICK OF UP
BILLION. THAT'S A LOT OF EXTRA KICK OF UP SIDE POTENTIAL THAT'S AVAILABLE
THAT'S A LOT OF EXTRA KICK OF UP SIDE POTENTIAL THAT'S AVAILABLE
THAT'S A LOT OF EXTRA KICK OF UP SIDE POTENTIAL THAT'S AVAILABLE BUT SOME OF THOSE INVESTMENT
SIDE POTENTIAL THAT'S AVAILABLE BUT SOME OF THOSE INVESTMENT
SIDE POTENTIAL THAT'S AVAILABLE BUT SOME OF THOSE INVESTMENT DECISIONS HAVE ALREADY BEEN MADE
BUT SOME OF THOSE INVESTMENT DECISIONS HAVE ALREADY BEEN MADE
BUT SOME OF THOSE INVESTMENT DECISIONS HAVE ALREADY BEEN MADE SO THEY WON'T COME BACK TO THEM.
DECISIONS HAVE ALREADY BEEN MADE SO THEY WON'T COME BACK TO THEM.
DECISIONS HAVE ALREADY BEEN MADE SO THEY WON'T COME BACK TO THEM. IT'S JUST -- THAT'S WHY WE CAN'T
SO THEY WON'T COME BACK TO THEM. IT'S JUST -- THAT'S WHY WE CAN'T
SO THEY WON'T COME BACK TO THEM. IT'S JUST -- THAT'S WHY WE CAN'T ASSUME THAT WE JUST SUDDENLY GET
IT'S JUST -- THAT'S WHY WE CAN'T ASSUME THAT WE JUST SUDDENLY GET
IT'S JUST -- THAT'S WHY WE CAN'T ASSUME THAT WE JUST SUDDENLY GET THERE.
ASSUME THAT WE JUST SUDDENLY GET THERE.
ASSUME THAT WE JUST SUDDENLY GET THERE. BUT IT REPRESENTS THE POTENTIAL
THERE. BUT IT REPRESENTS THE POTENTIAL
THERE. BUT IT REPRESENTS THE POTENTIAL FOR UPSIDE RISK IN THE OUTLOOK
BUT IT REPRESENTS THE POTENTIAL FOR UPSIDE RISK IN THE OUTLOOK
BUT IT REPRESENTS THE POTENTIAL FOR UPSIDE RISK IN THE OUTLOOK WHENEVER IT SHOWS UP.
FOR UPSIDE RISK IN THE OUTLOOK WHENEVER IT SHOWS UP.
FOR UPSIDE RISK IN THE OUTLOOK WHENEVER IT SHOWS UP. >> Question: I NOTICE THERE'S
WHENEVER IT SHOWS UP. >> Question: I NOTICE THERE'S
WHENEVER IT SHOWS UP. >> Question: I NOTICE THERE'S SOME STOCK MARKET REACTION TO
>> Question: I NOTICE THERE'S SOME STOCK MARKET REACTION TO
>> Question: I NOTICE THERE'S SOME STOCK MARKET REACTION TO THE CORONAVIRUS.
SOME STOCK MARKET REACTION TO THE CORONAVIRUS.
SOME STOCK MARKET REACTION TO THE CORONAVIRUS. IS THAT ON YOUR RADAR IN TERMS
THE CORONAVIRUS. IS THAT ON YOUR RADAR IN TERMS
THE CORONAVIRUS. IS THAT ON YOUR RADAR IN TERMS OF RISKS THAT COULD AFFECT OUR
IS THAT ON YOUR RADAR IN TERMS OF RISKS THAT COULD AFFECT OUR
IS THAT ON YOUR RADAR IN TERMS OF RISKS THAT COULD AFFECT OUR ECONOMY SOMEHOW GOING FORWARD?
OF RISKS THAT COULD AFFECT OUR ECONOMY SOMEHOW GOING FORWARD?
OF RISKS THAT COULD AFFECT OUR ECONOMY SOMEHOW GOING FORWARD? >> WELL, WE WOULD NEED TO LOOK
ECONOMY SOMEHOW GOING FORWARD? >> WELL, WE WOULD NEED TO LOOK
ECONOMY SOMEHOW GOING FORWARD? >> WELL, WE WOULD NEED TO LOOK AT THAT.
>> WELL, WE WOULD NEED TO LOOK AT THAT.
>> WELL, WE WOULD NEED TO LOOK AT THAT. FIRST AND FOREMOST, IT'S A
AT THAT. FIRST AND FOREMOST, IT'S A
AT THAT. FIRST AND FOREMOST, IT'S A TERRIBLE OUTCOME FOR PEOPLE WHO
FIRST AND FOREMOST, IT'S A TERRIBLE OUTCOME FOR PEOPLE WHO
FIRST AND FOREMOST, IT'S A TERRIBLE OUTCOME FOR PEOPLE WHO ARE AFFECTED.
TERRIBLE OUTCOME FOR PEOPLE WHO ARE AFFECTED.
TERRIBLE OUTCOME FOR PEOPLE WHO ARE AFFECTED. JUST RECALL, ROLL THINGS BACK TO
ARE AFFECTED. JUST RECALL, ROLL THINGS BACK TO
ARE AFFECTED. JUST RECALL, ROLL THINGS BACK TO 2003, WHEN WE HAD THE SARS
JUST RECALL, ROLL THINGS BACK TO 2003, WHEN WE HAD THE SARS
JUST RECALL, ROLL THINGS BACK TO 2003, WHEN WE HAD THE SARS OUTBREAK, WE HAD EXPERIENCED
2003, WHEN WE HAD THE SARS OUTBREAK, WE HAD EXPERIENCED
2003, WHEN WE HAD THE SARS OUTBREAK, WE HAD EXPERIENCED THEN TRYING TO WORK OUT HOW THAT
OUTBREAK, WE HAD EXPERIENCED THEN TRYING TO WORK OUT HOW THAT
OUTBREAK, WE HAD EXPERIENCED THEN TRYING TO WORK OUT HOW THAT MIGHT AFFECT THE ECONOMY.
THEN TRYING TO WORK OUT HOW THAT MIGHT AFFECT THE ECONOMY.
THEN TRYING TO WORK OUT HOW THAT MIGHT AFFECT THE ECONOMY. EACH OF THESE EPISODES ARE
MIGHT AFFECT THE ECONOMY. EACH OF THESE EPISODES ARE
MIGHT AFFECT THE ECONOMY. EACH OF THESE EPISODES ARE DIFFERENT.
EACH OF THESE EPISODES ARE DIFFERENT.
EACH OF THESE EPISODES ARE DIFFERENT. BUT I JUST POINTED TO THAT
DIFFERENT. BUT I JUST POINTED TO THAT
DIFFERENT. BUT I JUST POINTED TO THAT BECAUSE IT'S SOMETHING THAT
BUT I JUST POINTED TO THAT BECAUSE IT'S SOMETHING THAT
BUT I JUST POINTED TO THAT BECAUSE IT'S SOMETHING THAT UNFORTUNATELY HAS HAPPENED
BECAUSE IT'S SOMETHING THAT UNFORTUNATELY HAS HAPPENED
BECAUSE IT'S SOMETHING THAT UNFORTUNATELY HAS HAPPENED BEFORE IN SIMILAR WAY AND IT
UNFORTUNATELY HAS HAPPENED BEFORE IN SIMILAR WAY AND IT
UNFORTUNATELY HAS HAPPENED BEFORE IN SIMILAR WAY AND IT TENDS TO AFFECT AREAS LIKE
BEFORE IN SIMILAR WAY AND IT TENDS TO AFFECT AREAS LIKE
BEFORE IN SIMILAR WAY AND IT TENDS TO AFFECT AREAS LIKE RETAIL.
TENDS TO AFFECT AREAS LIKE RETAIL.
TENDS TO AFFECT AREAS LIKE RETAIL. PEOPLE DON'T GO OUT.
RETAIL. PEOPLE DON'T GO OUT.
RETAIL. PEOPLE DON'T GO OUT. THEY DON'T FLY IN PLANES.
PEOPLE DON'T GO OUT. THEY DON'T FLY IN PLANES.
PEOPLE DON'T GO OUT. THEY DON'T FLY IN PLANES. THEY DON'T USE TOURISM TO THE
THEY DON'T FLY IN PLANES. THEY DON'T USE TOURISM TO THE
THEY DON'T FLY IN PLANES. THEY DON'T USE TOURISM TO THE AFFECTED AREAS, SO THAT'S THE
THEY DON'T USE TOURISM TO THE AFFECTED AREAS, SO THAT'S THE
THEY DON'T USE TOURISM TO THE AFFECTED AREAS, SO THAT'S THE KIND OF THING THAT WE WOULD BE
AFFECTED AREAS, SO THAT'S THE KIND OF THING THAT WE WOULD BE
AFFECTED AREAS, SO THAT'S THE KIND OF THING THAT WE WOULD BE LOOKING AT IF THIS CURRENT
KIND OF THING THAT WE WOULD BE LOOKING AT IF THIS CURRENT
KIND OF THING THAT WE WOULD BE LOOKING AT IF THIS CURRENT EPISODE JUST BECOMES MORE
LOOKING AT IF THIS CURRENT EPISODE JUST BECOMES MORE
LOOKING AT IF THIS CURRENT EPISODE JUST BECOMES MORE PROMINENT IN CANADA AND NORTH
EPISODE JUST BECOMES MORE PROMINENT IN CANADA AND NORTH
EPISODE JUST BECOMES MORE PROMINENT IN CANADA AND NORTH AMERICA.
PROMINENT IN CANADA AND NORTH AMERICA.
PROMINENT IN CANADA AND NORTH AMERICA. >> GLORIA?
AMERICA. >> GLORIA?
AMERICA. >> GLORIA? >> Question: GLORIA GALLOWAY.
>> GLORIA? >> Question: GLORIA GALLOWAY.
>> GLORIA? >> Question: GLORIA GALLOWAY. WITH THE REMOVAL OF THE WORD
>> Question: GLORIA GALLOWAY. WITH THE REMOVAL OF THE WORD
>> Question: GLORIA GALLOWAY. WITH THE REMOVAL OF THE WORD "APPROPRIATE" TO DESCRIBE THE
WITH THE REMOVAL OF THE WORD "APPROPRIATE" TO DESCRIBE THE
WITH THE REMOVAL OF THE WORD "APPROPRIATE" TO DESCRIBE THE KEY RATE, IS IT FAIR TO SAY THAT
"APPROPRIATE" TO DESCRIBE THE KEY RATE, IS IT FAIR TO SAY THAT
"APPROPRIATE" TO DESCRIBE THE KEY RATE, IS IT FAIR TO SAY THAT THE BANK IS PRIMING MARKETS FOR
KEY RATE, IS IT FAIR TO SAY THAT THE BANK IS PRIMING MARKETS FOR
KEY RATE, IS IT FAIR TO SAY THAT THE BANK IS PRIMING MARKETS FOR A RATE CHANGE AND IF SO, DOES
THE BANK IS PRIMING MARKETS FOR A RATE CHANGE AND IF SO, DOES
THE BANK IS PRIMING MARKETS FOR A RATE CHANGE AND IF SO, DOES KURT ENVIRONMENT SUGGEST A RATE
A RATE CHANGE AND IF SO, DOES KURT ENVIRONMENT SUGGEST A RATE
A RATE CHANGE AND IF SO, DOES KURT ENVIRONMENT SUGGEST A RATE CHANGE WOULD BE UP OR DOWN GOING
KURT ENVIRONMENT SUGGEST A RATE CHANGE WOULD BE UP OR DOWN GOING
KURT ENVIRONMENT SUGGEST A RATE CHANGE WOULD BE UP OR DOWN GOING ON INTO THE FUTURE?
CHANGE WOULD BE UP OR DOWN GOING ON INTO THE FUTURE?
CHANGE WOULD BE UP OR DOWN GOING ON INTO THE FUTURE? >> WELL, JUST WITH RESPECT TO
ON INTO THE FUTURE? >> WELL, JUST WITH RESPECT TO
ON INTO THE FUTURE? >> WELL, JUST WITH RESPECT TO YOUR PREMISE, I MEAN, I'VE SAID
>> WELL, JUST WITH RESPECT TO YOUR PREMISE, I MEAN, I'VE SAID
>> WELL, JUST WITH RESPECT TO YOUR PREMISE, I MEAN, I'VE SAID MANY TIMES OVER THE PAST SEVEN
YOUR PREMISE, I MEAN, I'VE SAID MANY TIMES OVER THE PAST SEVEN
YOUR PREMISE, I MEAN, I'VE SAID MANY TIMES OVER THE PAST SEVEN YEARS THAT WE TRY TO PRESENT A
MANY TIMES OVER THE PAST SEVEN YEARS THAT WE TRY TO PRESENT A
MANY TIMES OVER THE PAST SEVEN YEARS THAT WE TRY TO PRESENT A FRESH ANALYSIS EACH TIME WE'RE
YEARS THAT WE TRY TO PRESENT A FRESH ANALYSIS EACH TIME WE'RE
YEARS THAT WE TRY TO PRESENT A FRESH ANALYSIS EACH TIME WE'RE HERE IN FRONT OF YOU, INCLUDING
FRESH ANALYSIS EACH TIME WE'RE HERE IN FRONT OF YOU, INCLUDING
FRESH ANALYSIS EACH TIME WE'RE HERE IN FRONT OF YOU, INCLUDING A FRESH PRESS RELEASE, AND THE
HERE IN FRONT OF YOU, INCLUDING A FRESH PRESS RELEASE, AND THE
HERE IN FRONT OF YOU, INCLUDING A FRESH PRESS RELEASE, AND THE REASON WE DO THAT IS SO THAT
A FRESH PRESS RELEASE, AND THE REASON WE DO THAT IS SO THAT
A FRESH PRESS RELEASE, AND THE REASON WE DO THAT IS SO THAT INDIVIDUAL WORDS DON'T BECOME SO
REASON WE DO THAT IS SO THAT INDIVIDUAL WORDS DON'T BECOME SO
INDIVIDUAL WORDS DON'T BECOME SO
INDIVIDUAL WORDS DON'T BECOME SO DPE EN SI IS
DPE EN SI IS
DPE EN SI IS THERE SOMETIMES ANT
DPE EN SI IS THERE SOMETIMES ANT
DPE EN SI IS THERE SOMETIMES ANT OTHER TIMES, IT DOESN'T MEAN
THERE SOMETIMES ANT OTHER TIMES, IT DOESN'T MEAN
THERE SOMETIMES ANT OTHER TIMES, IT DOESN'T MEAN SUDDENLY WE'RE NOT DATA
OTHER TIMES, IT DOESN'T MEAN SUDDENLY WE'RE NOT DATA
OTHER TIMES, IT DOESN'T MEAN SUDDENLY WE'RE NOT DATA DEPENDENT.
SUDDENLY WE'RE NOT DATA DEPENDENT.
SUDDENLY WE'RE NOT DATA DEPENDENT. WE'RE ALWAYS DATA DEPENDENT.
DEPENDENT. WE'RE ALWAYS DATA DEPENDENT.
DEPENDENT. WE'RE ALWAYS DATA DEPENDENT. AND "APPROPRIATE", I DARE SAY
WE'RE ALWAYS DATA DEPENDENT. AND "APPROPRIATE", I DARE SAY
WE'RE ALWAYS DATA DEPENDENT. AND "APPROPRIATE", I DARE SAY THAT INTEREST RATE I WILL STAND
AND "APPROPRIATE", I DARE SAY THAT INTEREST RATE I WILL STAND
AND "APPROPRIATE", I DARE SAY THAT INTEREST RATE I WILL STAND BY THIS -- THAT THE INTEREST
THAT INTEREST RATE I WILL STAND BY THIS -- THAT THE INTEREST
THAT INTEREST RATE I WILL STAND BY THIS -- THAT THE INTEREST RATE THAT WE HAVE TODAY REMAINS
BY THIS -- THAT THE INTEREST RATE THAT WE HAVE TODAY REMAINS
BY THIS -- THAT THE INTEREST RATE THAT WE HAVE TODAY REMAINS APPROPRIATE FOR THE CONDITIONS
RATE THAT WE HAVE TODAY REMAINS APPROPRIATE FOR THE CONDITIONS
RATE THAT WE HAVE TODAY REMAINS APPROPRIATE FOR THE CONDITIONS TH
APPROPRIATE FOR THE CONDITIONS TH
APPROPRIATE FOR THE CONDITIONS TH EVEN THOUGH IT DIDN'T SAY THAT
TH EVEN THOUGH IT DIDN'T SAY THAT
TH EVEN THOUGH IT DIDN'T SAY THAT IN THE PRESS RELEASE.
EVEN THOUGH IT DIDN'T SAY THAT IN THE PRESS RELEASE.
EVEN THOUGH IT DIDN'T SAY THAT IN THE PRESS RELEASE. BUT THE ANALYSIS THAT GOES WITH
IN THE PRESS RELEASE. BUT THE ANALYSIS THAT GOES WITH
IN THE PRESS RELEASE. BUT THE ANALYSIS THAT GOES WITH THAT SUGGESTS THAT THERE IS
BUT THE ANALYSIS THAT GOES WITH THAT SUGGESTS THAT THERE IS
BUT THE ANALYSIS THAT GOES WITH THAT SUGGESTS THAT THERE IS EMERGING THERE SOME DOWN SIDE
THAT SUGGESTS THAT THERE IS EMERGING THERE SOME DOWN SIDE
THAT SUGGESTS THAT THERE IS EMERGING THERE SOME DOWN SIDE RISK TO THE OUTLOOK FOR
EMERGING THERE SOME DOWN SIDE RISK TO THE OUTLOOK FOR
EMERGING THERE SOME DOWN SIDE RISK TO THE OUTLOOK FOR INFLATION.
RISK TO THE OUTLOOK FOR INFLATION.
RISK TO THE OUTLOOK FOR INFLATION. THAT'S WHAT ALL THAT TALKS
INFLATION. THAT'S WHAT ALL THAT TALKS
INFLATION. THAT'S WHAT ALL THAT TALKS ABOUT.
THAT'S WHAT ALL THAT TALKS ABOUT.
THAT'S WHAT ALL THAT TALKS ABOUT. SO NOT SAYING THAT THE DOOR IS
ABOUT. SO NOT SAYING THAT THE DOOR IS
ABOUT. SO NOT SAYING THAT THE DOOR IS NOT OPEN TO AN INTEREST RATE
SO NOT SAYING THAT THE DOOR IS NOT OPEN TO AN INTEREST RATE
SO NOT SAYING THAT THE DOOR IS NOT OPEN TO AN INTEREST RATE CUT.
NOT OPEN TO AN INTEREST RATE CUT.
NOT OPEN TO AN INTEREST RATE CUT. OBVIOUSLY IT IS.
CUT. OBVIOUSLY IT IS.
CUT. OBVIOUSLY IT IS. IT IS OPEN.
OBVIOUSLY IT IS. IT IS OPEN.
OBVIOUSLY IT IS. IT IS OPEN. BUT IT HINGES ON HOW THE DAY
IT IS OPEN. BUT IT HINGES ON HOW THE DAY
IT IS OPEN. BUT IT HINGES ON HOW THE DAY EVOLVED FROM HERE BECAUSE OUR
BUT IT HINGES ON HOW THE DAY EVOLVED FROM HERE BECAUSE OUR
BUT IT HINGES ON HOW THE DAY EVOLVED FROM HERE BECAUSE OUR BASE CASE -- WE HAVE A STRONG
EVOLVED FROM HERE BECAUSE OUR BASE CASE -- WE HAVE A STRONG
EVOLVED FROM HERE BECAUSE OUR BASE CASE -- WE HAVE A STRONG BELIEF THAT THIS WOULD PROVE
BASE CASE -- WE HAVE A STRONG BELIEF THAT THIS WOULD PROVE
BASE CASE -- WE HAVE A STRONG BELIEF THAT THIS WOULD PROVE TEMPORARY -- TEMPORARY COULD BE
BELIEF THAT THIS WOULD PROVE TEMPORARY -- TEMPORARY COULD BE
BELIEF THAT THIS WOULD PROVE TEMPORARY -- TEMPORARY COULD BE LONGER OR SHORTER.
TEMPORARY -- TEMPORARY COULD BE LONGER OR SHORTER.
TEMPORARY -- TEMPORARY COULD BE LONGER OR SHORTER. AND TO THE EXTENT THAT IT'S
LONGER OR SHORTER. AND TO THE EXTENT THAT IT'S
LONGER OR SHORTER. AND TO THE EXTENT THAT IT'S LONGER, THAT OPENS UP A LARGER
AND TO THE EXTENT THAT IT'S LONGER, THAT OPENS UP A LARGER
AND TO THE EXTENT THAT IT'S LONGER, THAT OPENS UP A LARGER OUTPUT GAP, PUTS MORE DOWNWARD
LONGER, THAT OPENS UP A LARGER OUTPUT GAP, PUTS MORE DOWNWARD
LONGER, THAT OPENS UP A LARGER OUTPUT GAP, PUTS MORE DOWNWARD PRESSURE ON INFLATION, AND WE
OUTPUT GAP, PUTS MORE DOWNWARD PRESSURE ON INFLATION, AND WE
OUTPUT GAP, PUTS MORE DOWNWARD PRESSURE ON INFLATION, AND WE WOULD HAVE TO COME BACK TO THAT
PRESSURE ON INFLATION, AND WE WOULD HAVE TO COME BACK TO THAT
PRESSURE ON INFLATION, AND WE WOULD HAVE TO COME BACK TO THAT DECISION TO DECIDE THEN WHETHER
WOULD HAVE TO COME BACK TO THAT DECISION TO DECIDE THEN WHETHER
WOULD HAVE TO COME BACK TO THAT DECISION TO DECIDE THEN WHETHER OR NOT INTEREST RATES, AS IT IS
DECISION TO DECIDE THEN WHETHER OR NOT INTEREST RATES, AS IT IS
DECISION TO DECIDE THEN WHETHER OR NOT INTEREST RATES, AS IT IS TODAY, REMAINS APPROPRIATE.
OR NOT INTEREST RATES, AS IT IS TODAY, REMAINS APPROPRIATE.
OR NOT INTEREST RATES, AS IT IS TODAY, REMAINS APPROPRIATE. >> DO YOU HAVE A FOLLOW-UP?
TODAY, REMAINS APPROPRIATE. >> DO YOU HAVE A FOLLOW-UP?
TODAY, REMAINS APPROPRIATE. >> DO YOU HAVE A FOLLOW-UP? KIM?
>> DO YOU HAVE A FOLLOW-UP? KIM?
>> DO YOU HAVE A FOLLOW-UP? KIM? >> Question: THANKS.
KIM? >> Question: THANKS.
KIM? >> Question: THANKS. KIM McKRAL.
>> Question: THANKS. KIM McKRAL.
>> Question: THANKS. KIM McKRAL. >> WHERE ARE YOU, KIM?
KIM McKRAL. >> WHERE ARE YOU, KIM?
KIM McKRAL. >> WHERE ARE YOU, KIM? THERE YOU ARE.
>> WHERE ARE YOU, KIM? THERE YOU ARE.
>> WHERE ARE YOU, KIM? THERE YOU ARE. OKAY.
THERE YOU ARE. OKAY.
THERE YOU ARE. OKAY. YOU'RE BEHIND GREG.
OKAY. YOU'RE BEHIND GREG.
OKAY. YOU'RE BEHIND GREG. ALL RIGHT.
YOU'RE BEHIND GREG. ALL RIGHT.
YOU'RE BEHIND GREG. ALL RIGHT. >> Question: CAN YOU JUST SPEAK
ALL RIGHT. >> Question: CAN YOU JUST SPEAK
ALL RIGHT. >> Question: CAN YOU JUST SPEAK TO, DURING THE DELIBERATIONS
>> Question: CAN YOU JUST SPEAK TO, DURING THE DELIBERATIONS
>> Question: CAN YOU JUST SPEAK TO, DURING THE DELIBERATIONS WITH GOVERNING COUNCIL, TO WHAT
TO, DURING THE DELIBERATIONS WITH GOVERNING COUNCIL, TO WHAT
TO, DURING THE DELIBERATIONS WITH GOVERNING COUNCIL, TO WHAT EXTENT WAS THERE -- DID ANYONE
WITH GOVERNING COUNCIL, TO WHAT EXTENT WAS THERE -- DID ANYONE
WITH GOVERNING COUNCIL, TO WHAT EXTENT WAS THERE -- DID ANYONE OR WAS THERE AN ARGUMENT FOR
EXTENT WAS THERE -- DID ANYONE OR WAS THERE AN ARGUMENT FOR
EXTENT WAS THERE -- DID ANYONE OR WAS THERE AN ARGUMENT FOR ACTUALLY BRINGING IN AN INTEREST
OR WAS THERE AN ARGUMENT FOR ACTUALLY BRINGING IN AN INTEREST
OR WAS THERE AN ARGUMENT FOR ACTUALLY BRINGING IN AN INTEREST RATE CUT THIS WEEK?
ACTUALLY BRINGING IN AN INTEREST RATE CUT THIS WEEK?
ACTUALLY BRINGING IN AN INTEREST RATE CUT THIS WEEK? >> WELL, I DON'T KNOW IF I CAN
RATE CUT THIS WEEK? >> WELL, I DON'T KNOW IF I CAN
RATE CUT THIS WEEK? >> WELL, I DON'T KNOW IF I CAN BE ANY CLEARER THAN I JUST WAS.
>> WELL, I DON'T KNOW IF I CAN BE ANY CLEARER THAN I JUST WAS.
>> WELL, I DON'T KNOW IF I CAN BE ANY CLEARER THAN I JUST WAS. AS A TECHNICAL MATTER, ALL THE
BE ANY CLEARER THAN I JUST WAS. AS A TECHNICAL MATTER, ALL THE
BE ANY CLEARER THAN I JUST WAS. AS A TECHNICAL MATTER, ALL THE INGREDIENTS ARE THERE FOR YOU TO
AS A TECHNICAL MATTER, ALL THE INGREDIENTS ARE THERE FOR YOU TO
AS A TECHNICAL MATTER, ALL THE INGREDIENTS ARE THERE FOR YOU TO CONSIDER THIS.
INGREDIENTS ARE THERE FOR YOU TO CONSIDER THIS.
INGREDIENTS ARE THERE FOR YOU TO CONSIDER THIS. IT'S INTERESTING TO COMPARE IT
CONSIDER THIS. IT'S INTERESTING TO COMPARE IT
CONSIDER THIS. IT'S INTERESTING TO COMPARE IT NOW TO, LET'S SAY, OCTOBER ASK,
IT'S INTERESTING TO COMPARE IT NOW TO, LET'S SAY, OCTOBER ASK,
IT'S INTERESTING TO COMPARE IT NOW TO, LET'S SAY, OCTOBER ASK, WHERE WE DISCUSSED, AND I SAID
NOW TO, LET'S SAY, OCTOBER ASK, WHERE WE DISCUSSED, AND I SAID
NOW TO, LET'S SAY, OCTOBER ASK, WHERE WE DISCUSSED, AND I SAID HERE THAT WE CONSIDERED WHETHER
WHERE WE DISCUSSED, AND I SAID HERE THAT WE CONSIDERED WHETHER
WHERE WE DISCUSSED, AND I SAID HERE THAT WE CONSIDERED WHETHER WE SHOULD BE -- WE SHOULD BE
HERE THAT WE CONSIDERED WHETHER WE SHOULD BE -- WE SHOULD BE
HERE THAT WE CONSIDERED WHETHER WE SHOULD BE -- WE SHOULD BE LOOKING AT AN INSURANCE RATE CUT
WE SHOULD BE -- WE SHOULD BE LOOKING AT AN INSURANCE RATE CUT
WE SHOULD BE -- WE SHOULD BE LOOKING AT AN INSURANCE RATE CUT IN OCTOBER AND WHAT SENSE WOULD
LOOKING AT AN INSURANCE RATE CUT IN OCTOBER AND WHAT SENSE WOULD
LOOKING AT AN INSURANCE RATE CUT IN OCTOBER AND WHAT SENSE WOULD IT BE INSURANCE?
IN OCTOBER AND WHAT SENSE WOULD IT BE INSURANCE?
IN OCTOBER AND WHAT SENSE WOULD IT BE INSURANCE? THAT WOULD BE INSURANCE AGAINST
IT BE INSURANCE? THAT WOULD BE INSURANCE AGAINST
IT BE INSURANCE? THAT WOULD BE INSURANCE AGAINST A DOWN SIDE RISK THAT, YOU KNOW,
THAT WOULD BE INSURANCE AGAINST A DOWN SIDE RISK THAT, YOU KNOW,
THAT WOULD BE INSURANCE AGAINST A DOWN SIDE RISK THAT, YOU KNOW, FROM THE OUTSIDE, WHICH WE KNEW
A DOWN SIDE RISK THAT, YOU KNOW, FROM THE OUTSIDE, WHICH WE KNEW
A DOWN SIDE RISK THAT, YOU KNOW, FROM THE OUTSIDE, WHICH WE KNEW WAS WASHING UP ON OUR SHORES AND
FROM THE OUTSIDE, WHICH WE KNEW WAS WASHING UP ON OUR SHORES AND
FROM THE OUTSIDE, WHICH WE KNEW WAS WASHING UP ON OUR SHORES AND THE QUESTION IS, HOW BIG WOULD
WAS WASHING UP ON OUR SHORES AND THE QUESTION IS, HOW BIG WOULD
WAS WASHING UP ON OUR SHORES AND THE QUESTION IS, HOW BIG WOULD IT BE?
THE QUESTION IS, HOW BIG WOULD IT BE?
THE QUESTION IS, HOW BIG WOULD IT BE? IS ONE.
IT BE? IS ONE.
IT BE? IS ONE. AND SECONDLY, IF IT WERE OF A
IS ONE. AND SECONDLY, IF IT WERE OF A
IS ONE. AND SECONDLY, IF IT WERE OF A MAGNITUDE, WOULD IT BE BIG
AND SECONDLY, IF IT WERE OF A MAGNITUDE, WOULD IT BE BIG
AND SECONDLY, IF IT WERE OF A MAGNITUDE, WOULD IT BE BIG ENOUGH TO OFFSET THE OTHER SIDE
MAGNITUDE, WOULD IT BE BIG ENOUGH TO OFFSET THE OTHER SIDE
MAGNITUDE, WOULD IT BE BIG ENOUGH TO OFFSET THE OTHER SIDE OF THAT RISK EVER INFLATION
ENOUGH TO OFFSET THE OTHER SIDE OF THAT RISK EVER INFLATION
ENOUGH TO OFFSET THE OTHER SIDE OF THAT RISK EVER INFLATION WHICH YOU WOULD BE POURING SOME
OF THAT RISK EVER INFLATION WHICH YOU WOULD BE POURING SOME
OF THAT RISK EVER INFLATION WHICH YOU WOULD BE POURING SOME FUEL ONTO FINANCIAL
WHICH YOU WOULD BE POURING SOME FUEL ONTO FINANCIAL
FUEL ONTO FINANCIAL
FUEL ONTO FINANCIAL VULNERABILIES TO MAKE AN EVEN
VULNERABILIES TO MAKE AN EVEN
VULNERABILIES TO MAKE AN EVEN HOTTER HOUSING MARKET AND MAKE
VULNERABILIES TO MAKE AN EVEN HOTTER HOUSING MARKET AND MAKE
VULNERABILIES TO MAKE AN EVEN HOTTER HOUSING MARKET AND MAKE IT HARDER FOR US TO REACH OUR
HOTTER HOUSING MARKET AND MAKE IT HARDER FOR US TO REACH OUR
HOTTER HOUSING MARKET AND MAKE IT HARDER FOR US TO REACH OUR INFLATION TARGET DOWN THE ROAD.
IT HARDER FOR US TO REACH OUR INFLATION TARGET DOWN THE ROAD.
IT HARDER FOR US TO REACH OUR INFLATION TARGET DOWN THE ROAD. WE WERE, LIKE, OKAY, NOW WE'RE
INFLATION TARGET DOWN THE ROAD. WE WERE, LIKE, OKAY, NOW WE'RE
INFLATION TARGET DOWN THE ROAD. WE WERE, LIKE, OKAY, NOW WE'RE ASSESSING HOW BIG THEY ACTUALLY
WE WERE, LIKE, OKAY, NOW WE'RE ASSESSING HOW BIG THEY ACTUALLY
ASSESSING HOW BIG THEY ACTUALLY
ASSESSING HOW BIG THEY ACTUALLY AND WHETHER THEY WILL CONTINUE
AND WHETHER THEY WILL CONTINUE
AND WHETHER THEY WILL CONTINUE TO GET BIGGER OR LAST LONGER
AND WHETHER THEY WILL CONTINUE TO GET BIGGER OR LAST LONGER
AND WHETHER THEY WILL CONTINUE TO GET BIGGER OR LAST LONGER THAN WE'RE SUPPOSING.
TO GET BIGGER OR LAST LONGER THAN WE'RE SUPPOSING.
TO GET BIGGER OR LAST LONGER THAN WE'RE SUPPOSING. SO IN THAT CONTEXT, YOU KNOW,
THAN WE'RE SUPPOSING. SO IN THAT CONTEXT, YOU KNOW,
THAN WE'RE SUPPOSING. SO IN THAT CONTEXT, YOU KNOW, THE SENSE OF WHETHER WE NEED
SO IN THAT CONTEXT, YOU KNOW, THE SENSE OF WHETHER WE NEED
SO IN THAT CONTEXT, YOU KNOW, THE SENSE OF WHETHER WE NEED EASIER -- AN EASING OF MONETARY
THE SENSE OF WHETHER WE NEED EASIER -- AN EASING OF MONETARY
THE SENSE OF WHETHER WE NEED EASIER -- AN EASING OF MONETARY CONDITIONS IS OBVIOUSLY PRESENCE
EASIER -- AN EASING OF MONETARY CONDITIONS IS OBVIOUSLY PRESENCE
EASIER -- AN EASING OF MONETARY CONDITIONS IS OBVIOUSLY PRESENCE IN THE ANALYSIS BUT THE
CONDITIONS IS OBVIOUSLY PRESENCE IN THE ANALYSIS BUT THE
CONDITIONS IS OBVIOUSLY PRESENCE IN THE ANALYSIS BUT THE TRADEOFFS ARE NOT AS SIMPLE AS
IN THE ANALYSIS BUT THE TRADEOFFS ARE NOT AS SIMPLE AS
IN THE ANALYSIS BUT THE TRADEOFFS ARE NOT AS SIMPLE AS IT SOUNDS IN THAT MECHANICAL
TRADEOFFS ARE NOT AS SIMPLE AS IT SOUNDS IN THAT MECHANICAL
TRADEOFFS ARE NOT AS SIMPLE AS IT SOUNDS IN THAT MECHANICAL WAY.
IT SOUNDS IN THAT MECHANICAL WAY.
IT SOUNDS IN THAT MECHANICAL WAY. SO AS CAROLYN WAS SUMMARIZING
WAY. SO AS CAROLYN WAS SUMMARIZING
WAY. SO AS CAROLYN WAS SUMMARIZING BEFORE, THERE ARE THESE
SO AS CAROLYN WAS SUMMARIZING BEFORE, THERE ARE THESE
SO AS CAROLYN WAS SUMMARIZING BEFORE, THERE ARE THESE COMPETING THINGS AND WE HAVE TO
BEFORE, THERE ARE THESE COMPETING THINGS AND WE HAVE TO
BEFORE, THERE ARE THESE COMPETING THINGS AND WE HAVE TO HAVE THOSE -- BOTH HORIZONS IN
COMPETING THINGS AND WE HAVE TO HAVE THOSE -- BOTH HORIZONS IN
COMPETING THINGS AND WE HAVE TO HAVE THOSE -- BOTH HORIZONS IN MIND THAT THIS IS WHY WE CALL IT
HAVE THOSE -- BOTH HORIZONS IN MIND THAT THIS IS WHY WE CALL IT
HAVE THOSE -- BOTH HORIZONS IN MIND THAT THIS IS WHY WE CALL IT A FLEXIBLE INFLATION TARGETING
MIND THAT THIS IS WHY WE CALL IT A FLEXIBLE INFLATION TARGETING
MIND THAT THIS IS WHY WE CALL IT A FLEXIBLE INFLATION TARGETING BECAUSE THE HORIZON OVER WHICH
A FLEXIBLE INFLATION TARGETING BECAUSE THE HORIZON OVER WHICH
A FLEXIBLE INFLATION TARGETING BECAUSE THE HORIZON OVER WHICH WE MAKE SURE THAT INFLATION IS
BECAUSE THE HORIZON OVER WHICH WE MAKE SURE THAT INFLATION IS
BECAUSE THE HORIZON OVER WHICH WE MAKE SURE THAT INFLATION IS BACK ON TARGET IS SOMETHING THAT
WE MAKE SURE THAT INFLATION IS BACK ON TARGET IS SOMETHING THAT
WE MAKE SURE THAT INFLATION IS BACK ON TARGET IS SOMETHING THAT WE CAN FLEX OUT OR IN DEPENDING
BACK ON TARGET IS SOMETHING THAT WE CAN FLEX OUT OR IN DEPENDING
BACK ON TARGET IS SOMETHING THAT WE CAN FLEX OUT OR IN DEPENDING ON CIRCUMSTANCES.
WE CAN FLEX OUT OR IN DEPENDING ON CIRCUMSTANCES.
WE CAN FLEX OUT OR IN DEPENDING ON CIRCUMSTANCES. AND THE THINGS THAT OFTEN DO
ON CIRCUMSTANCES. AND THE THINGS THAT OFTEN DO
ON CIRCUMSTANCES. AND THE THINGS THAT OFTEN DO THAT ARE THE FINANCIAL
AND THE THINGS THAT OFTEN DO THAT ARE THE FINANCIAL
AND THE THINGS THAT OFTEN DO THAT ARE THE FINANCIAL VULNERABILITIES THAT I'M
THAT ARE THE FINANCIAL VULNERABILITIES THAT I'M
THAT ARE THE FINANCIAL VULNERABILITIES THAT I'M SPEAKING.
VULNERABILITIES THAT I'M SPEAKING.
VULNERABILITIES THAT I'M SPEAKING. >> Question: GIVEN THAT SOME OF
SPEAKING. >> Question: GIVEN THAT SOME OF
SPEAKING. >> Question: GIVEN THAT SOME OF THOSE DOWN SIDE RISKS THAT YOU
>> Question: GIVEN THAT SOME OF THOSE DOWN SIDE RISKS THAT YOU
>> Question: GIVEN THAT SOME OF THOSE DOWN SIDE RISKS THAT YOU DESCRIBED HAVE CRYSTALIZED NOW,
THOSE DOWN SIDE RISKS THAT YOU DESCRIBED HAVE CRYSTALIZED NOW,
THOSE DOWN SIDE RISKS THAT YOU DESCRIBED HAVE CRYSTALIZED NOW, WE DID SEE A RATE CUT IN THE
DESCRIBED HAVE CRYSTALIZED NOW, WE DID SEE A RATE CUT IN THE
DESCRIBED HAVE CRYSTALIZED NOW, WE DID SEE A RATE CUT IN THE FUTURE WITH THAT NO LONGER BEING
WE DID SEE A RATE CUT IN THE FUTURE WITH THAT NO LONGER BEING
WE DID SEE A RATE CUT IN THE FUTURE WITH THAT NO LONGER BEING AN INSURANCE.
FUTURE WITH THAT NO LONGER BEING AN INSURANCE.
FUTURE WITH THAT NO LONGER BEING AN INSURANCE. THAT WOULD BE A CUT TO DEAL WITH
AN INSURANCE. THAT WOULD BE A CUT TO DEAL WITH
AN INSURANCE. THAT WOULD BE A CUT TO DEAL WITH THE PRESENT REALITY.
THAT WOULD BE A CUT TO DEAL WITH THE PRESENT REALITY.
THAT WOULD BE A CUT TO DEAL WITH THE PRESENT REALITY. >> THAT'S RIGHT.
THE PRESENT REALITY. >> THAT'S RIGHT.
THE PRESENT REALITY. >> THAT'S RIGHT. IT WOULD NOT BE CUT AGAINST A
>> THAT'S RIGHT. IT WOULD NOT BE CUT AGAINST A
>> THAT'S RIGHT. IT WOULD NOT BE CUT AGAINST A HYPOTHETICAL OR A POSSIBILITY.
IT WOULD NOT BE CUT AGAINST A HYPOTHETICAL OR A POSSIBILITY.
IT WOULD NOT BE CUT AGAINST A HYPOTHETICAL OR A POSSIBILITY. IT WOULD BE, YOU KNOW, THERE'S
HYPOTHETICAL OR A POSSIBILITY. IT WOULD BE, YOU KNOW, THERE'S
HYPOTHETICAL OR A POSSIBILITY. IT WOULD BE, YOU KNOW, THERE'S ALWAYS ADDITIONAL RISK AND
IT WOULD BE, YOU KNOW, THERE'S ALWAYS ADDITIONAL RISK AND
IT WOULD BE, YOU KNOW, THERE'S ALWAYS ADDITIONAL RISK AND CONSIDERATIONS IN NEW FORECASTS.
ALWAYS ADDITIONAL RISK AND CONSIDERATIONS IN NEW FORECASTS.
ALWAYS ADDITIONAL RISK AND CONSIDERATIONS IN NEW FORECASTS. FOR US A MEANINGFUL SHORTFALL.
CONSIDERATIONS IN NEW FORECASTS. FOR US A MEANINGFUL SHORTFALL.
CONSIDERATIONS IN NEW FORECASTS. FOR US A MEANINGFUL SHORTFALL. OUR INFLATION TARGET AND AS WE
FOR US A MEANINGFUL SHORTFALL. OUR INFLATION TARGET AND AS WE
FOR US A MEANINGFUL SHORTFALL. OUR INFLATION TARGET AND AS WE FELT COMPELLED TO ACT ON IT.
OUR INFLATION TARGET AND AS WE FELT COMPELLED TO ACT ON IT.
OUR INFLATION TARGET AND AS WE FELT COMPELLED TO ACT ON IT. THAT IS OUR PRIMARY MISSION, OF
FELT COMPELLED TO ACT ON IT. THAT IS OUR PRIMARY MISSION, OF
FELT COMPELLED TO ACT ON IT. THAT IS OUR PRIMARY MISSION, OF .
THAT IS OUR PRIMARY MISSION, OF .
THAT IS OUR PRIMARY MISSION, OF . >> BILL?
. >> BILL?
. >> BILL? >> Question: ON ISSUE OF
>> BILL? >> Question: ON ISSUE OF
>> BILL? >> Question: ON ISSUE OF HOUSEHOLD VULNERABILITIES AND
>> Question: ON ISSUE OF HOUSEHOLD VULNERABILITIES AND
>> Question: ON ISSUE OF HOUSEHOLD VULNERABILITIES AND THE HOUSING MARKETS, THE
HOUSEHOLD VULNERABILITIES AND THE HOUSING MARKETS, THE
HOUSEHOLD VULNERABILITIES AND THE HOUSING MARKETS, THE GOVERNMENT IS CONSIDERING THE
THE HOUSING MARKETS, THE GOVERNMENT IS CONSIDERING THE
THE HOUSING MARKETS, THE GOVERNMENT IS CONSIDERING THE TERMS OF THE MORTGAGE STRESS
GOVERNMENT IS CONSIDERING THE TERMS OF THE MORTGAGE STRESS
GOVERNMENT IS CONSIDERING THE TERMS OF THE MORTGAGE STRESS TEST AND I'M CURIOUS IF EITHER
TERMS OF THE MORTGAGE STRESS TEST AND I'M CURIOUS IF EITHER
TERMS OF THE MORTGAGE STRESS TEST AND I'M CURIOUS IF EITHER OF YOU WOULD WEIGH IN ON YOUR
TEST AND I'M CURIOUS IF EITHER OF YOU WOULD WEIGH IN ON YOUR
TEST AND I'M CURIOUS IF EITHER OF YOU WOULD WEIGH IN ON YOUR THOUGHTS ON THE EFFECTIVENESS OF
OF YOU WOULD WEIGH IN ON YOUR THOUGHTS ON THE EFFECTIVENESS OF
OF YOU WOULD WEIGH IN ON YOUR THOUGHTS ON THE EFFECTIVENESS OF THAT POLICY IN RECENT YEARS THAT
THOUGHTS ON THE EFFECTIVENESS OF THAT POLICY IN RECENT YEARS THAT
THOUGHTS ON THE EFFECTIVENESS OF THAT POLICY IN RECENT YEARS THAT ADDRESSING SOME OF THE CONCERNS
THAT POLICY IN RECENT YEARS THAT ADDRESSING SOME OF THE CONCERNS
THAT POLICY IN RECENT YEARS THAT ADDRESSING SOME OF THE CONCERNS ABOUT RISK AND INDEBTEDNESS
ADDRESSING SOME OF THE CONCERNS ABOUT RISK AND INDEBTEDNESS
ADDRESSING SOME OF THE CONCERNS ABOUT RISK AND INDEBTEDNESS YOU'VE TALKED ABOUT AND IF THE
ABOUT RISK AND INDEBTEDNESS YOU'VE TALKED ABOUT AND IF THE
ABOUT RISK AND INDEBTEDNESS YOU'VE TALKED ABOUT AND IF THE TERMS OF THE PROGRAM WERE TO BE
YOU'VE TALKED ABOUT AND IF THE TERMS OF THE PROGRAM WERE TO BE
TERMS OF THE PROGRAM WERE TO BE
TERMS OF THE PROGRAM WERE TO BE LOOSENED, DO Y FORESEE MORE
LOOSENED, DO Y FORESEE MORE
LOOSENED, DO Y FORESEE MORE RI I ARE Y'VE BEEN
LOOSENED, DO Y FORESEE MORE RI I ARE Y'VE BEEN
LOOSENED, DO Y FORESEE MORE RI I ARE Y'VE BEEN TALKING ABOUT?
RI I ARE Y'VE BEEN TALKING ABOUT?
RI I ARE Y'VE BEEN TALKING ABOUT? >> THAT'S A GOOD QUESTION.
TALKING ABOUT? >> THAT'S A GOOD QUESTION.
TALKING ABOUT? >> THAT'S A GOOD QUESTION. >> SO WE'VE BEEN VERY CLEAR THAT
>> THAT'S A GOOD QUESTION. >> SO WE'VE BEEN VERY CLEAR THAT
>> THAT'S A GOOD QUESTION. >> SO WE'VE BEEN VERY CLEAR THAT WE THINK THAT THE STRESS TEST
>> SO WE'VE BEEN VERY CLEAR THAT WE THINK THAT THE STRESS TEST
>> SO WE'VE BEEN VERY CLEAR THAT WE THINK THAT THE STRESS TEST HAS DONE A VERY GOOD JOB OF
WE THINK THAT THE STRESS TEST HAS DONE A VERY GOOD JOB OF
WE THINK THAT THE STRESS TEST HAS DONE A VERY GOOD JOB OF SAFEGUARDING THE SYSTEM AND
HAS DONE A VERY GOOD JOB OF SAFEGUARDING THE SYSTEM AND
HAS DONE A VERY GOOD JOB OF SAFEGUARDING THE SYSTEM AND ACTUALLY SAFEGUARDING
SAFEGUARDING THE SYSTEM AND ACTUALLY SAFEGUARDING
SAFEGUARDING THE SYSTEM AND ACTUALLY SAFEGUARDING INDIVIDUALS WHO ARE TAKING ON
ACTUALLY SAFEGUARDING INDIVIDUALS WHO ARE TAKING ON
ACTUALLY SAFEGUARDING INDIVIDUALS WHO ARE TAKING ON MORTGAGES SO THAT THEY CAN BE
INDIVIDUALS WHO ARE TAKING ON MORTGAGES SO THAT THEY CAN BE
INDIVIDUALS WHO ARE TAKING ON MORTGAGES SO THAT THEY CAN BE MORE CONFIDENT THAN THEY'LL BE
MORTGAGES SO THAT THEY CAN BE MORE CONFIDENT THAN THEY'LL BE
MORTGAGES SO THAT THEY CAN BE MORE CONFIDENT THAN THEY'LL BE ABLE TO HANDLE THE MORTGAGE OVER
MORE CONFIDENT THAN THEY'LL BE ABLE TO HANDLE THE MORTGAGE OVER
MORE CONFIDENT THAN THEY'LL BE ABLE TO HANDLE THE MORTGAGE OVER THE LIFE OF THE MORTGAGE.
ABLE TO HANDLE THE MORTGAGE OVER THE LIFE OF THE MORTGAGE.
ABLE TO HANDLE THE MORTGAGE OVER THE LIFE OF THE MORTGAGE. AND SO -- SO THAT'S THE FIRST
THE LIFE OF THE MORTGAGE. AND SO -- SO THAT'S THE FIRST
THE LIFE OF THE MORTGAGE. AND SO -- SO THAT'S THE FIRST POINT.
AND SO -- SO THAT'S THE FIRST POINT.
AND SO -- SO THAT'S THE FIRST POINT. WITH RESPECT TO ANY PARTICULAR
POINT. WITH RESPECT TO ANY PARTICULAR
POINT. WITH RESPECT TO ANY PARTICULAR CHANGES, THE MANDATE HERE ISN'T
WITH RESPECT TO ANY PARTICULAR CHANGES, THE MANDATE HERE ISN'T
WITH RESPECT TO ANY PARTICULAR CHANGES, THE MANDATE HERE ISN'T NECESSARILY TO LOOSEN IT.
CHANGES, THE MANDATE HERE ISN'T NECESSARILY TO LOOSEN IT.
CHANGES, THE MANDATE HERE ISN'T NECESSARILY TO LOOSEN IT. IT'S JUST TO MAKE IT MORE KIND
NECESSARILY TO LOOSEN IT. IT'S JUST TO MAKE IT MORE KIND
NECESSARILY TO LOOSEN IT. IT'S JUST TO MAKE IT MORE KIND DYNAMIC WITH RESPECT TO HOW
IT'S JUST TO MAKE IT MORE KIND DYNAMIC WITH RESPECT TO HOW
IT'S JUST TO MAKE IT MORE KIND DYNAMIC WITH RESPECT TO HOW INTEREST RATES, MORTGAGE RATES,
DYNAMIC WITH RESPECT TO HOW INTEREST RATES, MORTGAGE RATES,
DYNAMIC WITH RESPECT TO HOW INTEREST RATES, MORTGAGE RATES, ACTUALLY CHANGE.
INTEREST RATES, MORTGAGE RATES, ACTUALLY CHANGE.
INTEREST RATES, MORTGAGE RATES, ACTUALLY CHANGE. WHEN THE STRESS TEST WAS BROUGHT
ACTUALLY CHANGE. WHEN THE STRESS TEST WAS BROUGHT
ACTUALLY CHANGE. WHEN THE STRESS TEST WAS BROUGHT IN, IT WAS BRAND NEW.
WHEN THE STRESS TEST WAS BROUGHT IN, IT WAS BRAND NEW.
WHEN THE STRESS TEST WAS BROUGHT IN, IT WAS BRAND NEW. IT WAS PUT IN A TIME WHEN
IN, IT WAS BRAND NEW. IT WAS PUT IN A TIME WHEN
IN, IT WAS BRAND NEW. IT WAS PUT IN A TIME WHEN INTEREST RATES ARE REALLY LOW.
IT WAS PUT IN A TIME WHEN INTEREST RATES ARE REALLY LOW.
IT WAS PUT IN A TIME WHEN INTEREST RATES ARE REALLY LOW. AND ANYBODY WHO'S DOING -- BEEN
INTEREST RATES ARE REALLY LOW. AND ANYBODY WHO'S DOING -- BEEN
INTEREST RATES ARE REALLY LOW. AND ANYBODY WHO'S DOING -- BEEN DOING FINANCIAL REGULATION LONG
AND ANYBODY WHO'S DOING -- BEEN DOING FINANCIAL REGULATION LONG
AND ANYBODY WHO'S DOING -- BEEN DOING FINANCIAL REGULATION LONG ENOUGH KNOWS THAT AS YOU SEE
DOING FINANCIAL REGULATION LONG ENOUGH KNOWS THAT AS YOU SEE
DOING FINANCIAL REGULATION LONG ENOUGH KNOWS THAT AS YOU SEE THESE THINGS AT PLAY, YOU
ENOUGH KNOWS THAT AS YOU SEE THESE THINGS AT PLAY, YOU
ENOUGH KNOWS THAT AS YOU SEE THESE THINGS AT PLAY, YOU REALIZE THAT MAYBE THERE ARE
THESE THINGS AT PLAY, YOU REALIZE THAT MAYBE THERE ARE
THESE THINGS AT PLAY, YOU REALIZE THAT MAYBE THERE ARE SOME DESIRABLE TWEAKS THAT COULD
REALIZE THAT MAYBE THERE ARE SOME DESIRABLE TWEAKS THAT COULD
REALIZE THAT MAYBE THERE ARE SOME DESIRABLE TWEAKS THAT COULD BE MADE.
SOME DESIRABLE TWEAKS THAT COULD BE MADE.
SOME DESIRABLE TWEAKS THAT COULD BE MADE. WITH RESPECT TO WHAT AFFECT ANY
BE MADE. WITH RESPECT TO WHAT AFFECT ANY
BE MADE. WITH RESPECT TO WHAT AFFECT ANY TWEAK MIGHT HAVE, IT JUST
WITH RESPECT TO WHAT AFFECT ANY TWEAK MIGHT HAVE, IT JUST
WITH RESPECT TO WHAT AFFECT ANY TWEAK MIGHT HAVE, IT JUST DEPENDS ON HOW IT'S REDESIGNED
TWEAK MIGHT HAVE, IT JUST DEPENDS ON HOW IT'S REDESIGNED
TWEAK MIGHT HAVE, IT JUST DEPENDS ON HOW IT'S REDESIGNED AND WE HAVEN'T SEEN THAT YET SO
DEPENDS ON HOW IT'S REDESIGNED AND WE HAVEN'T SEEN THAT YET SO
DEPENDS ON HOW IT'S REDESIGNED AND WE HAVEN'T SEEN THAT YET SO WHAT BANK WILL DO IS TAKE LOOK
AND WE HAVEN'T SEEN THAT YET SO WHAT BANK WILL DO IS TAKE LOOK
AND WE HAVEN'T SEEN THAT YET SO WHAT BANK WILL DO IS TAKE LOOK AT IT WHEN IT HAPPENS AND LIKE
WHAT BANK WILL DO IS TAKE LOOK AT IT WHEN IT HAPPENS AND LIKE
WHAT BANK WILL DO IS TAKE LOOK AT IT WHEN IT HAPPENS AND LIKE WE DID IN THE PAST, TRY TO GET
AT IT WHEN IT HAPPENS AND LIKE WE DID IN THE PAST, TRY TO GET
AT IT WHEN IT HAPPENS AND LIKE WE DID IN THE PAST, TRY TO GET BALLPARK ESTIMATES WHAT THAT
WE DID IN THE PAST, TRY TO GET BALLPARK ESTIMATES WHAT THAT
WE DID IN THE PAST, TRY TO GET BALLPARK ESTIMATES WHAT THAT ACTUALLY MEANS FOR HOW IT MIGHT
BALLPARK ESTIMATES WHAT THAT ACTUALLY MEANS FOR HOW IT MIGHT
BALLPARK ESTIMATES WHAT THAT ACTUALLY MEANS FOR HOW IT MIGHT CHANGE THE ACCESSIBILITY OF
ACTUALLY MEANS FOR HOW IT MIGHT CHANGE THE ACCESSIBILITY OF
ACTUALLY MEANS FOR HOW IT MIGHT CHANGE THE ACCESSIBILITY OF MORTGAGES AND WHAT THAT MIGHT
CHANGE THE ACCESSIBILITY OF MORTGAGES AND WHAT THAT MIGHT
CHANGE THE ACCESSIBILITY OF MORTGAGES AND WHAT THAT MIGHT MEAN FOR THE HOUSING MARKET.
MORTGAGES AND WHAT THAT MIGHT MEAN FOR THE HOUSING MARKET.
MORTGAGES AND WHAT THAT MIGHT MEAN FOR THE HOUSING MARKET. >> ANY OTHER QUESTIONS?
MEAN FOR THE HOUSING MARKET. >> ANY OTHER QUESTIONS?
MEAN FOR THE HOUSING MARKET. >> ANY OTHER QUESTIONS? GOT TIME FOR ONE QUICK ONE.
>> ANY OTHER QUESTIONS? GOT TIME FOR ONE QUICK ONE.
>> ANY OTHER QUESTIONS? GOT TIME FOR ONE QUICK ONE. NOPE.
GOT TIME FOR ONE QUICK ONE. NOPE.
GOT TIME FOR ONE QUICK ONE. NOPE. THAT CONCLUDES THIS NEWS
NOPE. THAT CONCLUDES THIS NEWS
NOPE. THAT CONCLUDES THIS NEWS CONFERENCE.
THAT CONCLUDES THIS NEWS CONFERENCE.
THAT CONCLUDES THIS NEWS CONFERENCE. THANK YOU, GOVERNOR.
CONFERENCE. THANK YOU, GOVERNOR.
CONFERENCE. THANK YOU, GOVERNOR. THANK YOU -- OH.
THANK YOU, GOVERNOR. THANK YOU -- OH.
THANK YOU, GOVERNOR. THANK YOU -- OH. SORRY.OKA
THANK YOU -- OH. SORRY.OKA
THANK YOU -- OH. SORRY.OKA BLOOMBERG.
SORRY.OKA BLOOMBERG.
SORRY.OKA BLOOMBERG. >> Question: GOOD MORNING, THIS
BLOOMBERG. >> Question: GOOD MORNING, THIS
BLOOMBERG. >> Question: GOOD MORNING, THIS IS SHELLY HAGAN WITH BLOOMBERG
>> Question: GOOD MORNING, THIS IS SHELLY HAGAN WITH BLOOMBERG
>> Question: GOOD MORNING, THIS IS SHELLY HAGAN WITH BLOOMBERG NEWS.
IS SHELLY HAGAN WITH BLOOMBERG NEWS.
IS SHELLY HAGAN WITH BLOOMBERG NEWS. BASED ON YOUR FORECAST, IS IT
NEWS. BASED ON YOUR FORECAST, IS IT
NEWS. BASED ON YOUR FORECAST, IS IT FAIR TO SAY TO CARRY EXCESS
BASED ON YOUR FORECAST, IS IT FAIR TO SAY TO CARRY EXCESS
BASED ON YOUR FORECAST, IS IT FAIR TO SAY TO CARRY EXCESS CAPACITY THROUGHOUT THE
FAIR TO SAY TO CARRY EXCESS CAPACITY THROUGHOUT THE
FAIR TO SAY TO CARRY EXCESS CAPACITY THROUGHOUT THE PROJECTION HORIZON?
CAPACITY THROUGHOUT THE PROJECTION HORIZON?
CAPACITY THROUGHOUT THE PROJECTION HORIZON? >> IT'S SHOWN IN CHART 15 AS I
PROJECTION HORIZON? >> IT'S SHOWN IN CHART 15 AS I
PROJECTION HORIZON? >> IT'S SHOWN IN CHART 15 AS I MENTIONED IN MY OPENING REMARKS.
>> IT'S SHOWN IN CHART 15 AS I MENTIONED IN MY OPENING REMARKS.
>> IT'S SHOWN IN CHART 15 AS I MENTIONED IN MY OPENING REMARKS. A MODEST AMOUNT BUT IT'S
MENTIONED IN MY OPENING REMARKS. A MODEST AMOUNT BUT IT'S
MENTIONED IN MY OPENING REMARKS. A MODEST AMOUNT BUT IT'S PRESENT.
A MODEST AMOUNT BUT IT'S PRESENT.
A MODEST AMOUNT BUT IT'S PRESENT. YES.
PRESENT. YES.
PRESENT. YES. >> OKAY.
YES. >> OKAY.
YES. >> OKAY. GREG BONNELL.
>> OKAY. GREG BONNELL.
>> OKAY. GREG BONNELL. >> OKAY.
GREG BONNELL. >> OKAY.
GREG BONNELL. >> OKAY. >> Question: I THOUGHT I WAS ON
>> OKAY. >> Question: I THOUGHT I WAS ON
>> OKAY. >> Question: I THOUGHT I WAS ON THE LIST.
>> Question: I THOUGHT I WAS ON THE LIST.
>> Question: I THOUGHT I WAS ON THE LIST. I JUST WANTED TO ASK YOU, THE
THE LIST. I JUST WANTED TO ASK YOU, THE
THE LIST. I JUST WANTED TO ASK YOU, THE ECONOMISTS I SPEAK WITH, THEY
I JUST WANTED TO ASK YOU, THE ECONOMISTS I SPEAK WITH, THEY
I JUST WANTED TO ASK YOU, THE ECONOMISTS I SPEAK WITH, THEY CAN'T AGREE WHETHER YOUR PURE
ECONOMISTS I SPEAK WITH, THEY CAN'T AGREE WHETHER YOUR PURE
ECONOMISTS I SPEAK WITH, THEY CAN'T AGREE WHETHER YOUR PURE MANDATE WILL JUST BE INFLATION
CAN'T AGREE WHETHER YOUR PURE MANDATE WILL JUST BE INFLATION
CAN'T AGREE WHETHER YOUR PURE MANDATE WILL JUST BE INFLATION AND THAT HOUSEHOLD RISK WILL BE
MANDATE WILL JUST BE INFLATION AND THAT HOUSEHOLD RISK WILL BE
MANDATE WILL JUST BE INFLATION AND THAT HOUSEHOLD RISK WILL BE THE ELEPHANT IN THE ROOM BUT
AND THAT HOUSEHOLD RISK WILL BE THE ELEPHANT IN THE ROOM BUT
AND THAT HOUSEHOLD RISK WILL BE THE ELEPHANT IN THE ROOM BUT FROM THIS STATEMENT, IT SEEMS
THE ELEPHANT IN THE ROOM BUT FROM THIS STATEMENT, IT SEEMS
THE ELEPHANT IN THE ROOM BUT FROM THIS STATEMENT, IT SEEMS LIKE IT'S NO THE NOT THE
FROM THIS STATEMENT, IT SEEMS LIKE IT'S NO THE NOT THE
FROM THIS STATEMENT, IT SEEMS LIKE IT'S NO THE NOT THE ELEPHANT IN THE ROOM.
LIKE IT'S NO THE NOT THE ELEPHANT IN THE ROOM.
LIKE IT'S NO THE NOT THE ELEPHANT IN THE ROOM. IT HAD A SEAT AT THE TABLE.
ELEPHANT IN THE ROOM. IT HAD A SEAT AT THE TABLE.
ELEPHANT IN THE ROOM. IT HAD A SEAT AT THE TABLE. ARE WE, AFTER A DECADE OF
IT HAD A SEAT AT THE TABLE. ARE WE, AFTER A DECADE OF
IT HAD A SEAT AT THE TABLE. ARE WE, AFTER A DECADE OF INDEBTEDNESS, AT A PLACE WHERE
ARE WE, AFTER A DECADE OF INDEBTEDNESS, AT A PLACE WHERE
ARE WE, AFTER A DECADE OF INDEBTEDNESS, AT A PLACE WHERE WE HAVE AN OFFICIAL DUAL
INDEBTEDNESS, AT A PLACE WHERE WE HAVE AN OFFICIAL DUAL
INDEBTEDNESS, AT A PLACE WHERE WE HAVE AN OFFICIAL DUAL MANDATE, INFLATION HERE,
WE HAVE AN OFFICIAL DUAL MANDATE, INFLATION HERE,
WE HAVE AN OFFICIAL DUAL MANDATE, INFLATION HERE, HOUSEHOLD DEBT AND RISK ON THE
MANDATE, INFLATION HERE, HOUSEHOLD DEBT AND RISK ON THE
MANDATE, INFLATION HERE, HOUSEHOLD DEBT AND RISK ON THE OTHER SIDE?
HOUSEHOLD DEBT AND RISK ON THE OTHER SIDE?
HOUSEHOLD DEBT AND RISK ON THE OTHER SIDE? >> I CERTAINLY WOULDN'T
OTHER SIDE? >> I CERTAINLY WOULDN'T
OTHER SIDE? >> I CERTAINLY WOULDN'T CHARACTERIZE IT AS YOU JUST
>> I CERTAINLY WOULDN'T CHARACTERIZE IT AS YOU JUST
>> I CERTAINLY WOULDN'T CHARACTERIZE IT AS YOU JUST HAVE.
CHARACTERIZE IT AS YOU JUST HAVE.
CHARACTERIZE IT AS YOU JUST HAVE. CERTAINLY NOT A DUAL MANDATE.
HAVE. CERTAINLY NOT A DUAL MANDATE.
HAVE. CERTAINLY NOT A DUAL MANDATE. I JUST MENTIONED A MOMENT AGO
CERTAINLY NOT A DUAL MANDATE. I JUST MENTIONED A MOMENT AGO
CERTAINLY NOT A DUAL MANDATE. I JUST MENTIONED A MOMENT AGO WHEN OUR PRIMARY MISSION IS AND
I JUST MENTIONED A MOMENT AGO WHEN OUR PRIMARY MISSION IS AND
I JUST MENTIONED A MOMENT AGO WHEN OUR PRIMARY MISSION IS AND THAT HAS NOT CHANGED.
WHEN OUR PRIMARY MISSION IS AND THAT HAS NOT CHANGED.
WHEN OUR PRIMARY MISSION IS AND THAT HAS NOT CHANGED. HOWEVER, AS WE'VE COVERED A
THAT HAS NOT CHANGED. HOWEVER, AS WE'VE COVERED A
THAT HAS NOT CHANGED. HOWEVER, AS WE'VE COVERED A COUPLE OF TIMES ELEVATED
HOWEVER, AS WE'VE COVERED A COUPLE OF TIMES ELEVATED
HOWEVER, AS WE'VE COVERED A COUPLE OF TIMES ELEVATED VULNERABILITIES, WHY WE CALL
COUPLE OF TIMES ELEVATED VULNERABILITIES, WHY WE CALL
COUPLE OF TIMES ELEVATED VULNERABILITIES, WHY WE CALL THEM VULNERABILITY AS OPPOSED TO
VULNERABILITIES, WHY WE CALL THEM VULNERABILITY AS OPPOSED TO
VULNERABILITIES, WHY WE CALL THEM VULNERABILITY AS OPPOSED TO RISK.
THEM VULNERABILITY AS OPPOSED TO RISK.
THEM VULNERABILITY AS OPPOSED TO RISK. IT'S LIKE A CRACK IN YOUR TREE
RISK. IT'S LIKE A CRACK IN YOUR TREE
RISK. IT'S LIKE A CRACK IN YOUR TREE AND EVERYTHING IS OKAY UNTIL A
IT'S LIKE A CRACK IN YOUR TREE AND EVERYTHING IS OKAY UNTIL A
IT'S LIKE A CRACK IN YOUR TREE AND EVERYTHING IS OKAY UNTIL A BAD STORM COMES.
AND EVERYTHING IS OKAY UNTIL A BAD STORM COMES.
AND EVERYTHING IS OKAY UNTIL A BAD STORM COMES. WHAT THAT MEANS THEN IS IF THERE
BAD STORM COMES. WHAT THAT MEANS THEN IS IF THERE
BAD STORM COMES. WHAT THAT MEANS THEN IS IF THERE IS A DOWNSIDE SHOCK TO THE
WHAT THAT MEANS THEN IS IF THERE IS A DOWNSIDE SHOCK TO THE
WHAT THAT MEANS THEN IS IF THERE IS A DOWNSIDE SHOCK TO THE ECONOMY LIKE -- IT DOESN'T
IS A DOWNSIDE SHOCK TO THE ECONOMY LIKE -- IT DOESN'T
IS A DOWNSIDE SHOCK TO THE ECONOMY LIKE -- IT DOESN'T MATTER WHAT IT IS.
ECONOMY LIKE -- IT DOESN'T MATTER WHAT IT IS.
ECONOMY LIKE -- IT DOESN'T MATTER WHAT IT IS. BUT IT COMES FROM OUTSIDE
MATTER WHAT IT IS. BUT IT COMES FROM OUTSIDE
MATTER WHAT IT IS. BUT IT COMES FROM OUTSIDE USUALLY AND THE ECONOMY SLOWS,
BUT IT COMES FROM OUTSIDE USUALLY AND THE ECONOMY SLOWS,
BUT IT COMES FROM OUTSIDE USUALLY AND THE ECONOMY SLOWS, THE EFFECT OF THAT SHOCK ON THE
USUALLY AND THE ECONOMY SLOWS, THE EFFECT OF THAT SHOCK ON THE
USUALLY AND THE ECONOMY SLOWS, THE EFFECT OF THAT SHOCK ON THE ECONOMY IS MAGNIFIED BECAUSE OF
THE EFFECT OF THAT SHOCK ON THE ECONOMY IS MAGNIFIED BECAUSE OF
THE EFFECT OF THAT SHOCK ON THE ECONOMY IS MAGNIFIED BECAUSE OF THOSE FINANCIAL VULNERABILITIES.
ECONOMY IS MAGNIFIED BECAUSE OF THOSE FINANCIAL VULNERABILITIES.
ECONOMY IS MAGNIFIED BECAUSE OF THOSE FINANCIAL VULNERABILITIES. SO FOR A GIVEN SHOCK, YOU HAVE A
THOSE FINANCIAL VULNERABILITIES. SO FOR A GIVEN SHOCK, YOU HAVE A
THOSE FINANCIAL VULNERABILITIES. SO FOR A GIVEN SHOCK, YOU HAVE A MUCH BIGGER DEVIATION FROM YOUR
SO FOR A GIVEN SHOCK, YOU HAVE A MUCH BIGGER DEVIATION FROM YOUR
SO FOR A GIVEN SHOCK, YOU HAVE A MUCH BIGGER DEVIATION FROM YOUR INFLATION TARGET AND MUCH HARDER
MUCH BIGGER DEVIATION FROM YOUR INFLATION TARGET AND MUCH HARDER
MUCH BIGGER DEVIATION FROM YOUR INFLATION TARGET AND MUCH HARDER JOB GETTING THE ECONOMY BACK ON
INFLATION TARGET AND MUCH HARDER JOB GETTING THE ECONOMY BACK ON
INFLATION TARGET AND MUCH HARDER JOB GETTING THE ECONOMY BACK ON TRACK TO KEEP INFLATION ON
JOB GETTING THE ECONOMY BACK ON TRACK TO KEEP INFLATION ON
JOB GETTING THE ECONOMY BACK ON TRACK TO KEEP INFLATION ON TARGET OR GET IT BACK TO TARGET.
TRACK TO KEEP INFLATION ON TARGET OR GET IT BACK TO TARGET.
TRACK TO KEEP INFLATION ON TARGET OR GET IT BACK TO TARGET. SO WHAT THAT MEANS IS THAT IN A
TARGET OR GET IT BACK TO TARGET. SO WHAT THAT MEANS IS THAT IN A
TARGET OR GET IT BACK TO TARGET. SO WHAT THAT MEANS IS THAT IN A TIME SENSE, RIGHT, THAT DECISION
SO WHAT THAT MEANS IS THAT IN A TIME SENSE, RIGHT, THAT DECISION
SO WHAT THAT MEANS IS THAT IN A TIME SENSE, RIGHT, THAT DECISION ABOUT WHETHER YOU NEED TO KEEP
TIME SENSE, RIGHT, THAT DECISION ABOUT WHETHER YOU NEED TO KEEP
TIME SENSE, RIGHT, THAT DECISION ABOUT WHETHER YOU NEED TO KEEP INFLATION ON TARGET EVERY MINUTE
ABOUT WHETHER YOU NEED TO KEEP INFLATION ON TARGET EVERY MINUTE
ABOUT WHETHER YOU NEED TO KEEP INFLATION ON TARGET EVERY MINUTE OR EVERY YEAR OR EVERY TWO YEARS
INFLATION ON TARGET EVERY MINUTE OR EVERY YEAR OR EVERY TWO YEARS
INFLATION ON TARGET EVERY MINUTE OR EVERY YEAR OR EVERY TWO YEARS MATTERS QUITE A LOT, RIGHT.
OR EVERY YEAR OR EVERY TWO YEARS MATTERS QUITE A LOT, RIGHT.
OR EVERY YEAR OR EVERY TWO YEARS MATTERS QUITE A LOT, RIGHT. SO IF YOU TRY TO DO IT REALLY
MATTERS QUITE A LOT, RIGHT. SO IF YOU TRY TO DO IT REALLY
MATTERS QUITE A LOT, RIGHT. SO IF YOU TRY TO DO IT REALLY RAPIDLY, YOU MAY BE CREATING
SO IF YOU TRY TO DO IT REALLY RAPIDLY, YOU MAY BE CREATING
SO IF YOU TRY TO DO IT REALLY RAPIDLY, YOU MAY BE CREATING FINANCIAL VULNERABILITIES THAT
RAPIDLY, YOU MAY BE CREATING FINANCIAL VULNERABILITIES THAT
RAPIDLY, YOU MAY BE CREATING FINANCIAL VULNERABILITIES THAT YOU WOULD REGRET LATER SO YOU
FINANCIAL VULNERABILITIES THAT YOU WOULD REGRET LATER SO YOU
FINANCIAL VULNERABILITIES THAT YOU WOULD REGRET LATER SO YOU NEED TO BE MINDFUL THAT THERE
YOU WOULD REGRET LATER SO YOU NEED TO BE MINDFUL THAT THERE
YOU WOULD REGRET LATER SO YOU NEED TO BE MINDFUL THAT THERE ARE TRADE-OFFS THROUGH TIME AND
NEED TO BE MINDFUL THAT THERE ARE TRADE-OFFS THROUGH TIME AND
NEED TO BE MINDFUL THAT THERE ARE TRADE-OFFS THROUGH TIME AND THEY MATTER TO THE INFLATION
ARE TRADE-OFFS THROUGH TIME AND THEY MATTER TO THE INFLATION
ARE TRADE-OFFS THROUGH TIME AND THEY MATTER TO THE INFLATION TARGETING RESPONSIBILITY.
THEY MATTER TO THE INFLATION TARGETING RESPONSIBILITY.
THEY MATTER TO THE INFLATION TARGETING RESPONSIBILITY. SO IT ALL DIS'TILS DOWN TO
TARGETING RESPONSIBILITY. SO IT ALL DIS'TILS DOWN TO
TARGETING RESPONSIBILITY. SO IT ALL DIS'TILS DOWN TO INFLATION MANDATE.
SO IT ALL DIS'TILS DOWN TO INFLATION MANDATE.
SO IT ALL DIS'TILS DOWN TO INFLATION MANDATE. I THINK WE'RE REACHING A MUCH
INFLATION MANDATE. I THINK WE'RE REACHING A MUCH
INFLATION MANDATE. I THINK WE'RE REACHING A MUCH MORE, LET'S SAY, RIGOROUS
I THINK WE'RE REACHING A MUCH MORE, LET'S SAY, RIGOROUS
I THINK WE'RE REACHING A MUCH MORE, LET'S SAY, RIGOROUS UNDERSTANDING OF HOI FINANCIAL
MORE, LET'S SAY, RIGOROUS UNDERSTANDING OF HOI FINANCIAL
MORE, LET'S SAY, RIGOROUS UNDERSTANDING OF HOI FINANCIAL VULNERABILITIES FIGURE INTO THAT
UNDERSTANDING OF HOI FINANCIAL VULNERABILITIES FIGURE INTO THAT
UNDERSTANDING OF HOI FINANCIAL VULNERABILITIES FIGURE INTO THAT TRAPS MISSION MECHANISM AND HOW
VULNERABILITIES FIGURE INTO THAT TRAPS MISSION MECHANISM AND HOW
VULNERABILITIES FIGURE INTO THAT TRAPS MISSION MECHANISM AND HOW IT REACTS WITH POLICY.
TRAPS MISSION MECHANISM AND HOW IT REACTS WITH POLICY.
TRAPS MISSION MECHANISM AND HOW IT REACTS WITH POLICY. SO, YEAH, I'VE -- SINCE 2013,
IT REACTS WITH POLICY. SO, YEAH, I'VE -- SINCE 2013,
IT REACTS WITH POLICY. SO, YEAH, I'VE -- SINCE 2013, WE'VE BEEN WORKING ON THIS --
SO, YEAH, I'VE -- SINCE 2013, WE'VE BEEN WORKING ON THIS --
SO, YEAH, I'VE -- SINCE 2013, WE'VE BEEN WORKING ON THIS -- YOU KNOW, WHAT THESE TRADEOFFS
WE'VE BEEN WORKING ON THIS -- YOU KNOW, WHAT THESE TRADEOFFS
WE'VE BEEN WORKING ON THIS -- YOU KNOW, WHAT THESE TRADEOFFS LOOK LIKE.
YOU KNOW, WHAT THESE TRADEOFFS LOOK LIKE.
YOU KNOW, WHAT THESE TRADEOFFS LOOK LIKE. OBVIOUSLY WE'VE GOT HIGH
LOOK LIKE. OBVIOUSLY WE'VE GOT HIGH
LOOK LIKE. OBVIOUSLY WE'VE GOT HIGH FINANCIAL VULNERABILITIES ALL
OBVIOUSLY WE'VE GOT HIGH FINANCIAL VULNERABILITIES ALL
OBVIOUSLY WE'VE GOT HIGH FINANCIAL VULNERABILITIES ALL THIS
FINANCIAL VULNERABILITIES ALL THIS
FINANCIAL VULNERABILITIES ALL THIS AND IN SOME WAYS, THEY'VE GOTTEN
THIS AND IN SOME WAYS, THEY'VE GOTTEN
THIS AND IN SOME WAYS, THEY'VE GOTTEN WORSE AND IN OTHER WAYS, THEY'VE
AND IN SOME WAYS, THEY'VE GOTTEN WORSE AND IN OTHER WAYS, THEY'VE
AND IN SOME WAYS, THEY'VE GOTTEN WORSE AND IN OTHER WAYS, THEY'VE GOTTEN BETTER, BECAUSE WE'VE GOT
WORSE AND IN OTHER WAYS, THEY'VE GOTTEN BETTER, BECAUSE WE'VE GOT
WORSE AND IN OTHER WAYS, THEY'VE GOTTEN BETTER, BECAUSE WE'VE GOT B TO AND THINGS LIKE THAT WHICH
GOTTEN BETTER, BECAUSE WE'VE GOT B TO AND THINGS LIKE THAT WHICH
GOTTEN BETTER, BECAUSE WE'VE GOT B TO AND THINGS LIKE THAT WHICH TAKE THAT TRADEOFF AND SHIFT IT
B TO AND THINGS LIKE THAT WHICH TAKE THAT TRADEOFF AND SHIFT IT
B TO AND THINGS LIKE THAT WHICH TAKE THAT TRADEOFF AND SHIFT IT BACK TOWARDS, OKAY, NOW IT'S NOT
TAKE THAT TRADEOFF AND SHIFT IT BACK TOWARDS, OKAY, NOW IT'S NOT
TAKE THAT TRADEOFF AND SHIFT IT BACK TOWARDS, OKAY, NOW IT'S NOT AS THREATENING.
BACK TOWARDS, OKAY, NOW IT'S NOT AS THREATENING.
BACK TOWARDS, OKAY, NOW IT'S NOT AS THREATENING. SO THOSE THINGS MATTER QUITE A
AS THREATENING. SO THOSE THINGS MATTER QUITE A
AS THREATENING. SO THOSE THINGS MATTER QUITE A LOT TO THAT CALCULUS.
SO THOSE THINGS MATTER QUITE A LOT TO THAT CALCULUS.
SO THOSE THINGS MATTER QUITE A LOT TO THAT CALCULUS. SO YOU CAN'T NECESSARILY COMPARE
LOT TO THAT CALCULUS. SO YOU CAN'T NECESSARILY COMPARE
LOT TO THAT CALCULUS. SO YOU CAN'T NECESSARILY COMPARE TODAY TO, SAY, FIVE YEARS AGO,
SO YOU CAN'T NECESSARILY COMPARE TODAY TO, SAY, FIVE YEARS AGO,
SO YOU CAN'T NECESSARILY COMPARE TODAY TO, SAY, FIVE YEARS AGO, BECAUSE IN BETWEEN WE'VE HAD
TODAY TO, SAY, FIVE YEARS AGO, BECAUSE IN BETWEEN WE'VE HAD
TODAY TO, SAY, FIVE YEARS AGO, BECAUSE IN BETWEEN WE'VE HAD SOME REALLY GOOD MACRO
BECAUSE IN BETWEEN WE'VE HAD SOME REALLY GOOD MACRO
BECAUSE IN BETWEEN WE'VE HAD SOME REALLY GOOD MACRO CREDENTIAL MOVES THAT REDUCE
SOME REALLY GOOD MACRO CREDENTIAL MOVES THAT REDUCE
SOME REALLY GOOD MACRO CREDENTIAL MOVES THAT REDUCE RISKS OF FINANCIAL
CREDENTIAL MOVES THAT REDUCE RISKS OF FINANCIAL
CREDENTIAL MOVES THAT REDUCE RISKS OF FINANCIAL VULNERABILITIES ERUPTING INTO A
RISKS OF FINANCIAL VULNERABILITIES ERUPTING INTO A
RISKS OF FINANCIAL VULNERABILITIES ERUPTING INTO A MAJOR PROBLEM.
VULNERABILITIES ERUPTING INTO A MAJOR PROBLEM.
VULNERABILITIES ERUPTING INTO A MAJOR PROBLEM. >> Question: JUST QUICKLY, AT
MAJOR PROBLEM. >> Question: JUST QUICKLY, AT
MAJOR PROBLEM. >> Question: JUST QUICKLY, AT THE BEGINNING, WE MENTIONED BACK
>> Question: JUST QUICKLY, AT THE BEGINNING, WE MENTIONED BACK
>> Question: JUST QUICKLY, AT THE BEGINNING, WE MENTIONED BACK IN 2013, WHEN YOU GOT THE JOB,
THE BEGINNING, WE MENTIONED BACK IN 2013, WHEN YOU GOT THE JOB,
THE BEGINNING, WE MENTIONED BACK IN 2013, WHEN YOU GOT THE JOB, THE FIRST COUPLE OF YEARS, YOU
IN 2013, WHEN YOU GOT THE JOB, THE FIRST COUPLE OF YEARS, YOU
IN 2013, WHEN YOU GOT THE JOB, THE FIRST COUPLE OF YEARS, YOU WERE WAITING FOR THAT HANDOFF
THE FIRST COUPLE OF YEARS, YOU WERE WAITING FOR THAT HANDOFF
THE FIRST COUPLE OF YEARS, YOU WERE WAITING FOR THAT HANDOFF FROM THE CONSUMER TO THE
WERE WAITING FOR THAT HANDOFF FROM THE CONSUMER TO THE
WERE WAITING FOR THAT HANDOFF FROM THE CONSUMER TO THE EXPORTERS TO MANUFACTURERS,
FROM THE CONSUMER TO THE EXPORTERS TO MANUFACTURERS,
FROM THE CONSUMER TO THE EXPORTERS TO MANUFACTURERS, OBVIOUSLY WITH THE SIDELINED A
EXPORTERS TO MANUFACTURERS, OBVIOUSLY WITH THE SIDELINED A
EXPORTERS TO MANUFACTURERS, OBVIOUSLY WITH THE SIDELINED A NUMBER OF TIMES.
OBVIOUSLY WITH THE SIDELINED A NUMBER OF TIMES.
OBVIOUSLY WITH THE SIDELINED A NUMBER OF TIMES. BUT HOPE SEEMS TO BE BACK HERE
NUMBER OF TIMES. BUT HOPE SEEMS TO BE BACK HERE
NUMBER OF TIMES. BUT HOPE SEEMS TO BE BACK HERE BY 2021, EXPORTS WILL BE DOUBLE
BUT HOPE SEEMS TO BE BACK HERE BY 2021, EXPORTS WILL BE DOUBLE
BUT HOPE SEEMS TO BE BACK HERE BY 2021, EXPORTS WILL BE DOUBLE THEIR CONTRIBUTION.
BY 2021, EXPORTS WILL BE DOUBLE THEIR CONTRIBUTION.
BY 2021, EXPORTS WILL BE DOUBLE THEIR CONTRIBUTION. IS THE FEDERAL GOVERNMENT -- IS
THEIR CONTRIBUTION. IS THE FEDERAL GOVERNMENT -- IS
THEIR CONTRIBUTION. IS THE FEDERAL GOVERNMENT -- IS THE FEDERAL GOVERNMENT DOING
IS THE FEDERAL GOVERNMENT -- IS THE FEDERAL GOVERNMENT DOING
IS THE FEDERAL GOVERNMENT -- IS THE FEDERAL GOVERNMENT DOING ENOUGH TO ENTICE THE PRIVATE
THE FEDERAL GOVERNMENT DOING ENOUGH TO ENTICE THE PRIVATE
THE FEDERAL GOVERNMENT DOING ENOUGH TO ENTICE THE PRIVATE SECTOR TO ENTICE THE EXPORTERS,
ENOUGH TO ENTICE THE PRIVATE SECTOR TO ENTICE THE EXPORTERS,
ENOUGH TO ENTICE THE PRIVATE SECTOR TO ENTICE THE EXPORTERS, THE MANUFACTURERS?
SECTOR TO ENTICE THE EXPORTERS, THE MANUFACTURERS?
SECTOR TO ENTICE THE EXPORTERS, THE MANUFACTURERS? >> WELL, YOU KNOW, WE'VE SAID
THE MANUFACTURERS? >> WELL, YOU KNOW, WE'VE SAID
THE MANUFACTURERS? >> WELL, YOU KNOW, WE'VE SAID BEFORE THAT LIFE WOULD OF LOOKED
>> WELL, YOU KNOW, WE'VE SAID BEFORE THAT LIFE WOULD OF LOOKED
>> WELL, YOU KNOW, WE'VE SAID BEFORE THAT LIFE WOULD OF LOOKED A LOT DIFFERENT HAD WE NOT HAD
BEFORE THAT LIFE WOULD OF LOOKED A LOT DIFFERENT HAD WE NOT HAD
BEFORE THAT LIFE WOULD OF LOOKED A LOT DIFFERENT HAD WE NOT HAD THE INFRASTRUCTURE PROGRAM THAT
A LOT DIFFERENT HAD WE NOT HAD THE INFRASTRUCTURE PROGRAM THAT
A LOT DIFFERENT HAD WE NOT HAD THE INFRASTRUCTURE PROGRAM THAT THE GOVERNMENT PUT IN PLACE.
THE INFRASTRUCTURE PROGRAM THAT THE GOVERNMENT PUT IN PLACE.
THE INFRASTRUCTURE PROGRAM THAT THE GOVERNMENT PUT IN PLACE. IT DOESN'T SHOW A NEW
THE GOVERNMENT PUT IN PLACE. IT DOESN'T SHOW A NEW
THE GOVERNMENT PUT IN PLACE. IT DOESN'T SHOW A NEW CONTRIBUTION TO GROWTH, BECAUSE
IT DOESN'T SHOW A NEW CONTRIBUTION TO GROWTH, BECAUSE
IT DOESN'T SHOW A NEW CONTRIBUTION TO GROWTH, BECAUSE IT'S IN THE BASELINE FOR SEVERAL
CONTRIBUTION TO GROWTH, BECAUSE IT'S IN THE BASELINE FOR SEVERAL
CONTRIBUTION TO GROWTH, BECAUSE IT'S IN THE BASELINE FOR SEVERAL YEARS NOW.
IT'S IN THE BASELINE FOR SEVERAL YEARS NOW.
IT'S IN THE BASELINE FOR SEVERAL YEARS NOW. BUT IT'S $18 BILLION PER YEAR,
YEARS NOW. BUT IT'S $18 BILLION PER YEAR,
YEARS NOW. BUT IT'S $18 BILLION PER YEAR, SO THAT'S CLOSE TO 1% OF PDP
BUT IT'S $18 BILLION PER YEAR, SO THAT'S CLOSE TO 1% OF PDP
BUT IT'S $18 BILLION PER YEAR, SO THAT'S CLOSE TO 1% OF PDP EVERY YEAR COMING FROM THAT
SO THAT'S CLOSE TO 1% OF PDP EVERY YEAR COMING FROM THAT
SO THAT'S CLOSE TO 1% OF PDP EVERY YEAR COMING FROM THAT SOURCE SO THAT'S AN IMPORTANT
EVERY YEAR COMING FROM THAT SOURCE SO THAT'S AN IMPORTANT
EVERY YEAR COMING FROM THAT SOURCE SO THAT'S AN IMPORTANT THING WHICH ALLOWED INTEREST
SOURCE SO THAT'S AN IMPORTANT THING WHICH ALLOWED INTEREST
SOURCE SO THAT'S AN IMPORTANT THING WHICH ALLOWED INTEREST RATES TO NOT GO TO ZERO OR BELOW
THING WHICH ALLOWED INTEREST RATES TO NOT GO TO ZERO OR BELOW
THING WHICH ALLOWED INTEREST RATES TO NOT GO TO ZERO OR BELOW ZERO PERHAPS IN 2015/16.
RATES TO NOT GO TO ZERO OR BELOW ZERO PERHAPS IN 2015/16.
RATES TO NOT GO TO ZERO OR BELOW ZERO PERHAPS IN 2015/16. I'VE SAID THAT IN PUBLISHED
ZERO PERHAPS IN 2015/16. I'VE SAID THAT IN PUBLISHED
ZERO PERHAPS IN 2015/16. I'VE SAID THAT IN PUBLISHED PAPERS.
I'VE SAID THAT IN PUBLISHED PAPERS.
I'VE SAID THAT IN PUBLISHED PAPERS. SO, YES, IT'S BEEN AN IMPORTANT
PAPERS. SO, YES, IT'S BEEN AN IMPORTANT
PAPERS. SO, YES, IT'S BEEN AN IMPORTANT CONTRIBUTION TO HOW WE'VE GOTTEN
SO, YES, IT'S BEEN AN IMPORTANT CONTRIBUTION TO HOW WE'VE GOTTEN
SO, YES, IT'S BEEN AN IMPORTANT CONTRIBUTION TO HOW WE'VE GOTTEN HERE, AND SO ALL THAT TELLS YOU,
CONTRIBUTION TO HOW WE'VE GOTTEN HERE, AND SO ALL THAT TELLS YOU,
CONTRIBUTION TO HOW WE'VE GOTTEN HERE, AND SO ALL THAT TELLS YOU, THOUGH, IS THAT THE HEADWINDS
HERE, AND SO ALL THAT TELLS YOU, THOUGH, IS THAT THE HEADWINDS
HERE, AND SO ALL THAT TELLS YOU, THOUGH, IS THAT THE HEADWINDS THAT WE'VE BEEN FACING ARE FAR
THOUGH, IS THAT THE HEADWINDS THAT WE'VE BEEN FACING ARE FAR
THOUGH, IS THAT THE HEADWINDS THAT WE'VE BEEN FACING ARE FAR GREATER AND DIFFERENT FROM WHAT
THAT WE'VE BEEN FACING ARE FAR GREATER AND DIFFERENT FROM WHAT
THAT WE'VE BEEN FACING ARE FAR GREATER AND DIFFERENT FROM WHAT WE ENVISIONED BACK IN 2013.
GREATER AND DIFFERENT FROM WHAT WE ENVISIONED BACK IN 2013.
GREATER AND DIFFERENT FROM WHAT WE ENVISIONED BACK IN 2013. I MEAN, WE -- YOU'RE RIGHT.
WE ENVISIONED BACK IN 2013. I MEAN, WE -- YOU'RE RIGHT.
WE ENVISIONED BACK IN 2013. I MEAN, WE -- YOU'RE RIGHT. WE THOUGHT THE NATURAL SEQUENCE
I MEAN, WE -- YOU'RE RIGHT. WE THOUGHT THE NATURAL SEQUENCE
I MEAN, WE -- YOU'RE RIGHT. WE THOUGHT THE NATURAL SEQUENCE WOULD HAPPEN PRETTY RAPIDLY AND
WE THOUGHT THE NATURAL SEQUENCE WOULD HAPPEN PRETTY RAPIDLY AND
WE THOUGHT THE NATURAL SEQUENCE WOULD HAPPEN PRETTY RAPIDLY AND THE FIRST THING THAT WENT WRONG
WOULD HAPPEN PRETTY RAPIDLY AND THE FIRST THING THAT WENT WRONG
WOULD HAPPEN PRETTY RAPIDLY AND THE FIRST THING THAT WENT WRONG THAT EVEN THOUGH THE WORLD
THE FIRST THING THAT WENT WRONG THAT EVEN THOUGH THE WORLD
THE FIRST THING THAT WENT WRONG THAT EVEN THOUGH THE WORLD RECOVERED, EXPORTS DIDN'T
THAT EVEN THOUGH THE WORLD RECOVERED, EXPORTS DIDN'T
THAT EVEN THOUGH THE WORLD RECOVERED, EXPORTS DIDN'T REVE
RECOVERED, EXPORTS DIDN'T REVE
RECOVERED, EXPORTS DIDN'T REVE AND DEEPER RESEARCH SHOWED US
REVE AND DEEPER RESEARCH SHOWED US
REVE AND DEEPER RESEARCH SHOWED US THAT, WELL, YOU KNOW, WE HAVE
AND DEEPER RESEARCH SHOWED US THAT, WELL, YOU KNOW, WE HAVE
AND DEEPER RESEARCH SHOWED US THAT, WELL, YOU KNOW, WE HAVE LOST A LOT OF EXPORTERS;
THAT, WELL, YOU KNOW, WE HAVE LOST A LOT OF EXPORTERS;
THAT, WELL, YOU KNOW, WE HAVE LOST A LOT OF EXPORTERS; THEREFORE, THERE WAS NO EXPORTER
LOST A LOT OF EXPORTERS; THEREFORE, THERE WAS NO EXPORTER
LOST A LOT OF EXPORTERS; THEREFORE, THERE WAS NO EXPORTER TO RECOVER EVEN THOUGH DEMAND
THEREFORE, THERE WAS NO EXPORTER TO RECOVER EVEN THOUGH DEMAND
THEREFORE, THERE WAS NO EXPORTER TO RECOVER EVEN THOUGH DEMAND HAD GONE BACK UP.
TO RECOVER EVEN THOUGH DEMAND HAD GONE BACK UP.
TO RECOVER EVEN THOUGH DEMAND HAD GONE BACK UP. SO THROUGH THOSE YEARS, WE
HAD GONE BACK UP. SO THROUGH THOSE YEARS, WE
HAD GONE BACK UP. SO THROUGH THOSE YEARS, WE REBUILT THE EXPORT SECTOR WITH
SO THROUGH THOSE YEARS, WE REBUILT THE EXPORT SECTOR WITH
SO THROUGH THOSE YEARS, WE REBUILT THE EXPORT SECTOR WITH COMPLETELY DIFFERENT COMPANIES.
REBUILT THE EXPORT SECTOR WITH COMPLETELY DIFFERENT COMPANIES.
REBUILT THE EXPORT SECTOR WITH COMPLETELY DIFFERENT COMPANIES. NEW PRODUCTS AND SERVICES.
COMPLETELY DIFFERENT COMPANIES. NEW PRODUCTS AND SERVICES.
COMPLETELY DIFFERENT COMPANIES. NEW PRODUCTS AND SERVICES. SO THAT'S BEEN SLOW GOING.
NEW PRODUCTS AND SERVICES. SO THAT'S BEEN SLOW GOING.
NEW PRODUCTS AND SERVICES. SO THAT'S BEEN SLOW GOING. INVESTMENT HAS BEEN HELD BACK BY
SO THAT'S BEEN SLOW GOING. INVESTMENT HAS BEEN HELD BACK BY
SO THAT'S BEEN SLOW GOING. INVESTMENT HAS BEEN HELD BACK BY A COUPLE OF MAJOR DEVELOPMENTS,
INVESTMENT HAS BEEN HELD BACK BY A COUPLE OF MAJOR DEVELOPMENTS,
INVESTMENT HAS BEEN HELD BACK BY A COUPLE OF MAJOR DEVELOPMENTS, PARTICULARLY THE NAFTA
A COUPLE OF MAJOR DEVELOPMENTS, PARTICULARLY THE NAFTA
A COUPLE OF MAJOR DEVELOPMENTS, PARTICULARLY THE NAFTA UNCERTAINTY AND GLOBAL TRADE
PARTICULARLY THE NAFTA UNCERTAINTY AND GLOBAL TRADE
PARTICULARLY THE NAFTA UNCERTAINTY AND GLOBAL TRADE UNCERTAINTY.
UNCERTAINTY AND GLOBAL TRADE UNCERTAINTY.
UNCERTAINTY AND GLOBAL TRADE UNCERTAINTY. SO ALL OF THAT MATTERS A GREAT
UNCERTAINTY. SO ALL OF THAT MATTERS A GREAT
UNCERTAINTY. SO ALL OF THAT MATTERS A GREAT DEAL TO WHAT WE CALL THE MACRO
SO ALL OF THAT MATTERS A GREAT DEAL TO WHAT WE CALL THE MACRO
SO ALL OF THAT MATTERS A GREAT DEAL TO WHAT WE CALL THE MACRO ECONOMIC RISKS, AND SO JUST
DEAL TO WHAT WE CALL THE MACRO ECONOMIC RISKS, AND SO JUST
DEAL TO WHAT WE CALL THE MACRO ECONOMIC RISKS, AND SO JUST GETTING TO HOME, AS WE DESCRIBE
ECONOMIC RISKS, AND SO JUST GETTING TO HOME, AS WE DESCRIBE
ECONOMIC RISKS, AND SO JUST GETTING TO HOME, AS WE DESCRIBE IT, IS QUITE AN ACCOMPLISHMENT
GETTING TO HOME, AS WE DESCRIBE IT, IS QUITE AN ACCOMPLISHMENT
GETTING TO HOME, AS WE DESCRIBE IT, IS QUITE AN ACCOMPLISHMENT GIVEN ALL OF THOSE THINGS THAT
IT, IS QUITE AN ACCOMPLISHMENT GIVEN ALL OF THOSE THINGS THAT
IT, IS QUITE AN ACCOMPLISHMENT GIVEN ALL OF THOSE THINGS THAT OCCURRED AND WE ARE SOLIDLY AT
GIVEN ALL OF THOSE THINGS THAT OCCURRED AND WE ARE SOLIDLY AT
GIVEN ALL OF THOSE THINGS THAT OCCURRED AND WE ARE SOLIDLY AT HOME BUT STILL WITH INTEREST
OCCURRED AND WE ARE SOLIDLY AT HOME BUT STILL WITH INTEREST
OCCURRED AND WE ARE SOLIDLY AT HOME BUT STILL WITH INTEREST RATES REALLY LOW, STILL WITH
HOME BUT STILL WITH INTEREST RATES REALLY LOW, STILL WITH
HOME BUT STILL WITH INTEREST RATES REALLY LOW, STILL WITH FISCAL POLICY MAKING A
RATES REALLY LOW, STILL WITH FISCAL POLICY MAKING A
RATES REALLY LOW, STILL WITH FISCAL POLICY MAKING A SIGNIFICANT CONTRIBUTION, SO
FISCAL POLICY MAKING A SIGNIFICANT CONTRIBUTION, SO
FISCAL POLICY MAKING A SIGNIFICANT CONTRIBUTION, SO IT'S NOT ALL BEING DONE BY THE
SIGNIFICANT CONTRIBUTION, SO IT'S NOT ALL BEING DONE BY THE
SIGNIFICANT CONTRIBUTION, SO IT'S NOT ALL BEING DONE BY THE PRIVATE SECTOR ECONOMY.
IT'S NOT ALL BEING DONE BY THE PRIVATE SECTOR ECONOMY.
IT'S NOT ALL BEING DONE BY THE PRIVATE SECTOR ECONOMY. SO THERE'S STILL WORK TO BE
PRIVATE SECTOR ECONOMY. SO THERE'S STILL WORK TO BE
PRIVATE SECTOR ECONOMY. SO THERE'S STILL WORK TO BE DONE.
SO THERE'S STILL WORK TO BE DONE.
SO THERE'S STILL WORK TO BE DONE. IT'S NOT OVER.
DONE. IT'S NOT OVER.
DONE. IT'S NOT OVER. BUT AS FOR YOUR PRIOR QUESTION,
IT'S NOT OVER. BUT AS FOR YOUR PRIOR QUESTION,
IT'S NOT OVER. BUT AS FOR YOUR PRIOR QUESTION, YOU KNOW, HAVING THOSE THINGS AT
BUT AS FOR YOUR PRIOR QUESTION, YOU KNOW, HAVING THOSE THINGS AT
BUT AS FOR YOUR PRIOR QUESTION, YOU KNOW, HAVING THOSE THINGS AT THE TABLE, I MEAN, IT'S
YOU KNOW, HAVING THOSE THINGS AT THE TABLE, I MEAN, IT'S
YOU KNOW, HAVING THOSE THINGS AT THE TABLE, I MEAN, IT'S IMPORTANT TO UNDERSTAND THAT IT
THE TABLE, I MEAN, IT'S IMPORTANT TO UNDERSTAND THAT IT
THE TABLE, I MEAN, IT'S IMPORTANT TO UNDERSTAND THAT IT WAS FINANCIAL VULNERABILITIES
IMPORTANT TO UNDERSTAND THAT IT WAS FINANCIAL VULNERABILITIES
IMPORTANT TO UNDERSTAND THAT IT WAS FINANCIAL VULNERABILITIES AND SOME INDEPENDENT THING,
WAS FINANCIAL VULNERABILITIES AND SOME INDEPENDENT THING,
WAS FINANCIAL VULNERABILITIES AND SOME INDEPENDENT THING, RIGHT, SO IF -- DO YOU WANT TO
AND SOME INDEPENDENT THING, RIGHT, SO IF -- DO YOU WANT TO
AND SOME INDEPENDENT THING, RIGHT, SO IF -- DO YOU WANT TO ADD ANYTHING ABOUT THAT?
RIGHT, SO IF -- DO YOU WANT TO ADD ANYTHING ABOUT THAT?
RIGHT, SO IF -- DO YOU WANT TO ADD ANYTHING ABOUT THAT? >> I JUST THOUGHT THAT
ADD ANYTHING ABOUT THAT? >> I JUST THOUGHT THAT
ADD ANYTHING ABOUT THAT? >> I JUST THOUGHT THAT EVERYTHING THAT THE GOVERNOR
>> I JUST THOUGHT THAT EVERYTHING THAT THE GOVERNOR
>> I JUST THOUGHT THAT EVERYTHING THAT THE GOVERNOR SAID WAS OUTLINED PRETTY CLEARLY
EVERYTHING THAT THE GOVERNOR SAID WAS OUTLINED PRETTY CLEARLY
EVERYTHING THAT THE GOVERNOR SAID WAS OUTLINED PRETTY CLEARLY IN OUR INFLATION CONTROL
SAID WAS OUTLINED PRETTY CLEARLY IN OUR INFLATION CONTROL
SAID WAS OUTLINED PRETTY CLEARLY IN OUR INFLATION CONTROL AGREEMENT WITH THE GOVERNMENT
IN OUR INFLATION CONTROL AGREEMENT WITH THE GOVERNMENT
IN OUR INFLATION CONTROL AGREEMENT WITH THE GOVERNMENT THAT WE DID IN 2016.
AGREEMENT WITH THE GOVERNMENT THAT WE DID IN 2016.
AGREEMENT WITH THE GOVERNMENT THAT WE DID IN 2016. WE'RE REDOING IT FOR 20/21 BUT
THAT WE DID IN 2016. WE'RE REDOING IT FOR 20/21 BUT
THAT WE DID IN 2016. WE'RE REDOING IT FOR 20/21 BUT THIS IDEA THAT WE HAVE A SINGLE
WE'RE REDOING IT FOR 20/21 BUT THIS IDEA THAT WE HAVE A SINGLE
WE'RE REDOING IT FOR 20/21 BUT THIS IDEA THAT WE HAVE A SINGLE TARGET BUT WE SHOULD TAKE INTO
THIS IDEA THAT WE HAVE A SINGLE TARGET BUT WE SHOULD TAKE INTO
THIS IDEA THAT WE HAVE A SINGLE TARGET BUT WE SHOULD TAKE INTO ACCOUNT CONSIDERATIONS THAT MAY
TARGET BUT WE SHOULD TAKE INTO ACCOUNT CONSIDERATIONS THAT MAY
TARGET BUT WE SHOULD TAKE INTO ACCOUNT CONSIDERATIONS THAT MAY AFFECT OUR ABILITY TO ACHIEVE
ACCOUNT CONSIDERATIONS THAT MAY AFFECT OUR ABILITY TO ACHIEVE
ACCOUNT CONSIDERATIONS THAT MAY AFFECT OUR ABILITY TO ACHIEVE THAT TARGET OUTSIDE OUR USUAL
AFFECT OUR ABILITY TO ACHIEVE THAT TARGET OUTSIDE OUR USUAL
AFFECT OUR ABILITY TO ACHIEVE THAT TARGET OUTSIDE OUR USUAL HORIZON, WHICH IS 68 QUARTERS,
THAT TARGET OUTSIDE OUR USUAL HORIZON, WHICH IS 68 QUARTERS,
THAT TARGET OUTSIDE OUR USUAL HORIZON, WHICH IS 68 QUARTERS, THINGS LIKE FINANCIAL STABILITY,
HORIZON, WHICH IS 68 QUARTERS, THINGS LIKE FINANCIAL STABILITY,
HORIZON, WHICH IS 68 QUARTERS, THINGS LIKE FINANCIAL STABILITY, EVEN WITHIN OUR HORIZON, WE
THINGS LIKE FINANCIAL STABILITY, EVEN WITHIN OUR HORIZON, WE
THINGS LIKE FINANCIAL STABILITY, EVEN WITHIN OUR HORIZON, WE SHOULD BE THINKING ABOUT HOW
EVEN WITHIN OUR HORIZON, WE SHOULD BE THINKING ABOUT HOW
EVEN WITHIN OUR HORIZON, WE SHOULD BE THINKING ABOUT HOW WE'RE STABILIZING THE ECONOMY,
SHOULD BE THINKING ABOUT HOW WE'RE STABILIZING THE ECONOMY,
SHOULD BE THINKING ABOUT HOW WE'RE STABILIZING THE ECONOMY, WHERE EMPLOYMENT IS.
WE'RE STABILIZING THE ECONOMY, WHERE EMPLOYMENT IS.
WE'RE STABILIZING THE ECONOMY, WHERE EMPLOYMENT IS. THESE ARE ALL THINGS WE TAKE
WHERE EMPLOYMENT IS. THESE ARE ALL THINGS WE TAKE
WHERE EMPLOYMENT IS. THESE ARE ALL THINGS WE TAKE INTO ACCOUNT AND SO IT'S NOTHING
THESE ARE ALL THINGS WE TAKE INTO ACCOUNT AND SO IT'S NOTHING
THESE ARE ALL THINGS WE TAKE INTO ACCOUNT AND SO IT'S NOTHING NEW THAT WE'VE INTRODUCED.
INTO ACCOUNT AND SO IT'S NOTHING NEW THAT WE'VE INTRODUCED.
INTO ACCOUNT AND SO IT'S NOTHING NEW THAT WE'VE INTRODUCED. [ Please S