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

PHOTO: Big Brothers Big Sisters cuts ribbon at Bamford House

New facility to help local youth with mentorship

Rimbey RCMP on scene of serious collision

A portion of Highway 53 west of Rimbey is down to one lane while crews investigate

Lacombe County Council highlights- Sept. 13. 2018

Lacombe County held a regular meeting of Council

New athletic league for Burman volleyball and basketball teams

University joins Prairie Athletic Conference

City of Lacombe announces new playgrounds

Essex Park & Michener subdivision will provide new spaces for play

WATCH: AHS breaks ground on new Lacombe Community Health Centre

17,000 sq. ft. facility will bring existing Lacombe AHS services together

Kim agrees to dismantle main nuke site if US takes steps too

Kim promised to accept international inspectors to monitor the closing of a key missile test site and launch pad and to visit Seoul soon.

Wetaskiwin RCMP looking for missing youth

Police say 12-year-old Treston Minde left his residence on his bike Sept. 17 and hasn’t returned home

North Carolina gov pleads with storm evacuees to be patient

The death toll rose to at least 37 in three states Tuesday, with 27 fatalities in North Carolina.

North and South Korea say they plan to bid for 2032 Olympics

Moon and Kim announced a sweeping set of agreements including a vow to work together to host the Summer Olympics in 2032.

Russia’s reinstatement after doping scandal goes to a vote

The World Anti-Doping Agency is due to vote Thursday Sept. 20, 2018, on possible reinstatement of Russia.

Ontario wins stay on ruling that struck down council-cutting plan

The province had argued the stay was necessary to eliminate uncertainty surrounding the Oct. 22 vote, and the Court of Appeal agreed.

B.C. cannabis producer Tilray hits at $20-billion high as stock price explodes

This is the first export of a cannabis product from a Canadian company to the U.S.

‘Sesame Street’ wants to clarify: Bert and Ernie aren’t gay

The characters are best friends and have many human traits but “remain puppets, and do not have a sexual orientation”

Most Read