BoC's Leduc: Significant challenges remain with canadian productivity still "well below" US

Key highlights (via Reuters) from the prepared speech by the Bank of Canada Deputy Governor Sylvain Leduc:

• Canada's economic growth rate expected to decline over next few quarters; should still exceed potential output.
• Bank expects an increase in entry rates of businesses, decline in business exits over coming quarters.
• Productivity has increased significantly since mid-2016; recent data show rate of entry for new firms appears to have stabilized.
• Contribution of new firms to increasing economy's productive capacity could give rise to virtuous circle of growth.
• Increase in productive capacity from new firm creation would allow economy to grow faster without creating inflationary pressures.
• Sharp C$ depreciation following drop in oil prices may have contributed to growth of new firms
• Significant challenges remain with Canadian productivity still "well below" the U.S.
• Best contribution bank can make is to "promote economic stability" by keeping inflation at 2 pct.