There are going to be major demands for wage increases and thus causing further inflation.

They (IMF) will be very concerned with the upsurge of inflation. The other problem will be that the government still maintains 18 products under price controls.

Concerns, however, remain on the level of the national debt, inflation and lack of investment.

I don't think the market is terribly worried about inflation but there is an expectation that corporate profits might just struggle a little more.

You have to be positive on 10-year bonds when you expect lower inflation. I don't expect the Bank of Canada to raise rates at its next meeting because inflation is low and going lower.

The signal is that if we have good growth in 2006 but no inflation, there is no need to raise rates. I would even say, one more hike (this year), but not necessarily at the next announcement.