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

City of Wetaskiwin didn’t apply utility hikes to bills

Clerical financial error discovered by Wetaskiwin city council

Wetaskiwin’s visitor centre building back on the market

Surplus property relisted due to purchaser not meeting sale conditions: city

Wetaskiwin carjacking sees 76 year old woman’s vehicle stolen

Wetaskiwin RCMP with Crime Reduction Unit charge robbery suspects

EIR Celebrates 50 Years at the Moose Lodge in Wetaskiwin

Edmonton Raceway presents awards at ceremony Nov. 3

Wetaskiwin soldiers faced hardship, loneliness in WWI

Letters from local soldiers who fought 100 years ago

First Nation marks ‘milestone’ land deal at Alberta ceremony

Lubicon Lake First Nation Chief Billy-Joe Laboucan signed treaty last month

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.

Black Panther claw, Power Rangers blade among 2018’s ‘worst toys,’ safety group says

The World Against Toys Causing Harm organized announced its 46th annual list in Boston on Tuesday

UPDATE: Red Deer RCMP arrest man involved in fatal hit and run

RCMP flew to Nipawin, Sask. to arrest Tosh Vertraeten

What now for Calgary, Canada and Olympic Games after 2026 rejection?

Calgary, along with the 2010 Winter Games in Vancouver and Whistler, B.C., made Canada a player in the international sport community

Naked man arrested for impaired driving

The man allegedly fled the scene of a collision wearing only a sheet. Plus other Ponoka RCMP briefs

Sex-misconduct survey excludes vulnerable military members: Survivors’ group

But It’s Just 700 says recent research has shown young military members and those on training are among those most at risk for sexual violence

Many child killers have been placed in Indigenous healing lodges according to stats

As of mid-September, there were 11 offenders in healing lodges who had been convicted of first- or second-degree murder of a minor

Expect no quick end to Canada-wide cannabis shortages, producers warn

Provinces including British Columbia, Alberta have all reported varying degrees of shortages

Most Read