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.

A low inflation number is positive for bonds. It is possible that most of the tightening could be done.

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.

The market reacted positively to the lower than expected inflation figures. That means inflation is under control.

I don't think there's an inflation problem out there. We're very positive on equities.

House price inflation has picked up in recent months; if this continues it has positive implications for consumer spending via the wealth effect it provides to homeowners.