The Bank of Canada is seen in Ottawa on May 30, 2018. THE CANADIAN PRESS/Sean Kilpatrick

Canada could raise interest rates this week

Canada faces a number of trade-related uncertainties, including NAFTA talks, U.S. tariffs and the threat of more duties

After waiting for half a year, Stephen Poloz appears ready to get back on his rate-hiking path this week.

Recent signals from the Bank of Canada governor, combined with strong economic data, have experts widely predicting Poloz will raise his trend-setting rate Wednesday from its current level of 1.25 per cent.

Citing a cautious, data-dependent approach, Poloz hasn’t touched the rate since he increased it in January, a move that followed increases last year in September and July.

Another rate increase this week would come with Canada facing a number of trade-related uncertainties, including NAFTA talks, U.S. steel and aluminum tariffs and the threat of more duties on the economically critical automotive sector.

But TD chief economist Beata Caranci says she expects Poloz to work with the data he has in front of him and many analysts point to healthy numbers of late — including the Bank of Canada’s own survey on business sentiment, jobs numbers and growth in wages.

Caranci says if the trade dispute deteriorates further she believes hiking the interest rate now would give Poloz more flexibility to possibly lower it down the road, if necessary.

While expectations are high that Poloz will raise the rate this week, some experts predict the ongoing trade uncertainty will be enough to keep Poloz on hold for a little longer.

The National Bank of Canada wrote in a recent note that trade developments since the central bank’s last meeting, including stalled NAFTA talks and a possible trade war between the U.S. and China, will be enough to give Poloz pause.

In making the call, the National Bank acknowledged that it’s an outlier in a market that widely sees the right conditions for another increase.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

World-Renowned poet kicks off tour in Fort St. James

By Ruth Lloyd On September 20, 2018, the Community Hall Theatre of… Continue reading

‘Summer from hell’: vandals rob community garden following devastating wildfire season

The community rallied to keep the Health Minds Community Garden open in Fort St. James

College of New Caledonia offers new automotive glass technician program

The program is offered mainly online, allowing more students to take part from across the north

Decision on Burns Lake’s workforce camp “pending very soon”: Coastal GasLink

Meetings to discuss new camp location postponed due to wildfire situation

B.C. parents leery of HPV cervical cancer vaccine

Provincial registration uptake among lowest in Canada

VIDEO: Rare close encounter with whale pod spotted off B.C. waters

Pod of southern resident orca whales breach within arms length of whale watchers

Rattie scores 3 as Oilers blank Canucks 6-0

Vancouver slips to 1-5 in exhibition play

Veterans Affairs ordered to take second look before supporting vets’ relatives

Liberal government ordered officials to adopt a more critical eye

Dead B.C. motorcyclist was member of group that raced down mountain road

Some group members record their rides on Strathcona Parkway and post times to page

Indigenous athletes in spotlight at BC Sports Hall of Fame

New gallery to feature Carey Price, Kaila Mussel and Richard Peter

B.C. couple who went missing on flight from Edmonton named by family

Family released a statement Wednesday saying they’re still intent on finding the two-seater plane

VIDEO: A close look at what you were breathing during the B.C. wildfire season

Electron microscope images show soot and tar particles generated by worst B.C. fire season

B.C. woman donates $250,000 to ovarian cancer research for friends

Two of Patty Pitts’s friends passed away from the disease within a year

B.C. could provide clues as to how New Brunswick electoral results shake out

Premier Christy Clark faced a strikingly similar scenario following the province’s 2017 election

Most Read