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

COMMUTER ALERT: Serious pedestrian crash closes Pacific Highway

Traffic along 176th Street, 4th to 8th Avenue, is blocked while Mounties continue to investigate.

B.C. Sports Hall of Fame to give Giants owner Ron Toigo W.A.C. Bennett Award

Head of Langley-based team has been involved with junior hockey since the 1990s

VIDEO: Young Langley boy uses his grief to help other kids suffering loss

Thursday Langley Hospice hosts its Paint the Town Blue campaign to spotlight child bereavement.

No charges against cop accused of stuffing money into sock during search

BC Prosecution Service says not enough evidence against Abbotsford officer

‘Scrap-metal sweetie’ makes Langley centrefold

Most pictures in Langley’s 2019 firefighters’ calendar feature members with their own pets.

People flocking to Vancouver Island city to see hundreds of sea lions

Each year the combination of Steller and California sea lions take over Cowichan Bay

Protesters confront Environment Minister in B.C.

Protesters wanting more for killer whales confront Catherine McKenna

Humans reshaping evolutionary history of species around the globe: paper

University of British Columbia researcher had the paper published in the Proceedings of the Royal Society

Toronto ‘carding’ activist Desmond Cole stopped by police in Vancouver

Cole says his experience reveals what daily life is like for black and Indigenous residents

Tubing, skating, light display part of new winter festival in Vancouver

Set to open Nov. 23, the six-week festival will take over Vancouver’s Concord Pacific Centre

Commercial trucks banned from left lane of Coquihalla

B.C.’s Ministry of Transportation has introduced a new program that hopes to prevent accidents and closures on the Coquihalla Highway.

B.C. on track to record same number of overdose deaths as last year

128 people died of overdoses in September, bringing the total to more than 1,100 so far in 2018

B.C. firefighters rescue horse stuck in mud

‘It happens more often than you’d think,’ says deputy chief

Regulatory confusion over ‘toxic’ stink near Abbotsford school

Officials sniffing out which regulators responsible for enforcing compliance at neighbouring property

Most Read