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

Free farm succession planning workshop in Creston

The one-day workshop provides an overview of the succession planning process followed by detailed presentations by farm succession experts in accounting, law, insurance, and financing.

Teachers’ Association protests committee appointment process

Newly elected school trustee Al Gribbin’s request to sit on the Kootenay… Continue reading

Biologists discover another female calf in depleted South Purcell Mountain Caribou herd

Calf will be moved to Revelstoke maternity pens, then released

Save on Foods raises $3436.92 for Canyon Lister Elementary School

Canyon Lister Elementary School feeds breakfast to 225 children per week.

And the nominees are…

The awards cover a range of categories to honour businesses and organizations in the Creston Valley.

Fashion Fridays: Up your beauty game

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Judge rules Abbotsford home must be sold after son tries to evict mom

Mom to get back down payment and initial expenses

Trump officially declares national emergency to build border wall

President plans to siphon billions from federal military construction and counterdrug efforts

Snow turns to slush, rain as it warms up across B.C.’s south coast

Some areas are already covered by more than half a metre of snow following three separate storms

Father to be charged with first-degree murder in Amber Alert case

11-year-old Riya Rajkumar was found dead in her father’s home in Brampton, Ontario

Police track armed kidnapping across Thompson-Okanagan

RCMP allege it was a targeted crime believed to be linked to the drug trade

St. Paul’s Hospital replacement slated to open in Vancouver in 2026

Announced many times, but this time there’s money, Adrian Dix says

Fourteen ‘dream’ homes ordered evacuated as sinkholes open in Sechelt

Sinkholes throughout the subdivision have prompted the District of Sechelt to issue evacuation orders

Olympian Rhoda Wurtele visits Fernie; reveals secret to skiing at 97

Rhoda Wurtele and her identical twin sister Rhona represented Canada at the 1948 Olympics

Most Read