Canada’s economic prospects for 2004 are essentially unchanged from those forecast in January, Bank of Canada Senior Deputy Governor Paul Jenkins said on Tuesday.

He said core inflation is likely to rise in the coming months, and will hold around 1.5% through the end of this year before rising toward 2% next year.

“Although final domestic demand might be marginally weaker than projected, net external demand could be somewhat stronger because of the pickup in global economic activity, especially in the United States and Asia, and higher commodity prices,” he said in a speech at the University of British Columbia.

The central bank is holding to its January’s forecast of 2.75% economic growth this year and 3.75% next year, he added.

The federal government’s budget last week, however, forecast growth this year of 2.7% and 3.3% next year.