Wilkins Downplays Canada Export Gains as Oil Damage Lingers (1)

(Bloomberg) — Bank of Canada Senior Deputy Governor Carolyn Wilkins said Canada’s economy is still adjusting to a slump in oil-sector investment, and the prospect for exports is uncertain even with two months of gains.Risks to inflation are “tilted somewhat to the downside,” and there’s “material slack” in Canada’s economy, Wilkins said Thursday in the pulp-and-paper hub of Trois-Rivières, Quebec, the final speech from a policy maker before the bank’s Oct. 19 rate decision.The central bank has backed away from predictions as recently as July that non-energy exports would dominate an economic recovery. Wilkins’ remarks underscore Governor Stephen Poloz’s assessment from last week that Canada’s economy may need three to five years to recover from crude oil’s plunge, which began in mid-2014.“The Bank of Canada is maintaining a more cautious view of Canadian export performance, and by extension, the overall …