Bank of Canada Governor: Estimated potential inflation close to 2.5%

Bank of Canada Governor Macklem: The consequences of the shift in US trade policy are not as severe as imagined. Officials estimate potential inflation to be close to 2.5%. Officials expect GDP to shrink by 1.5% in the second quarter. The rise in potential inflation mainly reflects the increase in prices of goods other than energy. Indicators show that idle capacity has increased since January.